Reference no: EM131786471

1. Quebec Corporation, a Canadian corporation, is a 100% subsidiary of USA, Corp, a U.S. corporation. USA Corp reported U. S. taxable income of $2,000,000 and is in the 34% US tax rate. Quebec Corporation had the following:

a. Post 1986 earnings and profits $2,400,000
b. Post 1986 foreign taxes $1,600,000
c. Paid a dividend to USA Corp $ 600,000
d. Tax withheld on dividend to USA Corp $ 30,000

Compute the following tax consequences to USA Corp as a result of the dividend from Quebec Corporation. Assume the dividends are General Category Income. Your quiz is to review the computation and email me a copy of the solution .

a. USA Corp Taxable Income
b. USA Corp Net Tax
c. FTC Carryforward