Which of the Following Foreign Taxes Are Not Creditable for U.S

question 97

Multiple Choice

Which of the following foreign taxes are not creditable for U.S. tax purposes?

• A) Direct taxes paid by a U.S. corporation on income earned in a foreign branch.
• B) Withholding taxes imposed on a dividend received by a U.S. corporation from its 100 percent owned foreign subsidiary.
• C) Deemed paid taxes on a dividend received by a U.S. corporation from its 100 percent owned foreign subsidiary.
• D) All of these taxes are creditable.

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Definitions:

Owner's Drawings

These are the withdrawals of cash or other assets by the owner from the business for personal use.

Owner's Capital

The amount of equity in a company that belongs to the owner, including initial investment plus any retained earnings.

Salaries Expense

Represents the total amount paid to employees for services rendered during a particular period.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is globally accepted for financial reporting.