What will be the balance burlesons account as of january

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Stanley Distribution, Inc. is a US subsidiary of a foreign corporation. In 2014, Stanley's first year of operations, it reported taxable income of $40 million and made no distributions to its foreign parent. In 2015, Stanley had taxable income of $50 million and distributed $20 million as a dividend to its foreign parent.

1) What is Stanley's U.S. corporate income tax liability for 2015? Assume a 35% US corporate income tax rate.

2) What will be the net distribution received by the foreign parent if Burleson withholds 30% of the 2015 dividend and pays it over to the IRS?

3) What will be the balance Burleson's E&P account as of January 1, 2016?

Reference no: EM131809938

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