What is the effective tax rate consolidated income tax

Reference no: EM13573194

Teflon Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipments for U.S. consumers. The manufacturing subsidiary has total manufacturing costs of 1,500,000 plus general and administrative expenses of 350,000. The manufacturing unit sells the equipment for 2,500,000 to the U.S. marketing subsidiary, which sells it to the final consumer for an aggregate of 3,500,000. The sales subsidiary has total marketing, general, and administrative costs of 200,000. Assume that Singapore has a corporate tax rate of 33% and that the U.S. tax rate is 46%. Assume that no tax treaties or other spectial tax treatment apply.
What is the effective tax rate (consolidated income tax/ consolidated operating income) of Teflon Company? What is the new effective tax rate, if the manufacturing subsidiary raises its price by 20% to sales subsidiary?

Reference no: EM13573194

Questions Cloud

What would be the effect of this purchase on income before : aa hardware uses the lifo method to value its inventory. inventory at the beginning of the year consisted of 25000

University printers has two service departments and two : university printers has two service departments and two operating departments printing and developing. management has

Abraham isaac and jacob each have a capital balance of : abraham isaac and jacob each have a capital balance of 50000.abraham is very old and is retiring from the business. the

Consider a project that requires a company to invest : consider a project that requires a company to invest 100000 today and they expect the project to generate 115000 of

What is the effective tax rate consolidated income tax : teflon company has a manufacturing subsidiary in singapore that produces high-end exercise equipments for u.s.

Calculate the cost per equivalent unit for transferred-in : on march 1 upton companys packaging department had work in process inventory of 8820 units which had been transferred

Would you identify the key audit objectives associated with : would you identify the key audit objectives associated with year-end cash receipts and sales cutoff

Maxwell will receive22 per share the firm has 1 million : maxwell corp. is coming to the market with a new offering of300000 shares of stock at 25 to the public. maxwell will

Which of the following represents the second largest : which of the following represents the second largest payroll related expense incurred by

User Account

All Pages