Kiwi Corporation Is a 100 Percent Owned Australian Subsidiary of Exotic

question 19

Short Answer

Kiwi Corporation is a 100 percent owned Australian subsidiary of Exotic Fruit Corporation,a U.S.corporation.Kiwi had post-1986 earnings and profits of 1,000,000 Australian dollars (AUD)and post-1986 foreign taxes of $225,000.During the current year,Kiwi paid a dividend of 250,000 AUD to Exotic Fruit.Assume an exchange rate of 1 AUD = $0.75.No withholding tax was imposed on the dividend.What amount of taxable income does the dividend generate on Exotic's U.S.tax return?

---

Definitions:

Block Scheduling

An organizational approach in education where classes are scheduled in longer blocks of time rather than traditional shorter periods.

High-priority Tasks

Tasks that are deemed most important or critical, requiring immediate attention and action.

Multitask

The ability to perform several tasks simultaneously.

Lack of Respect

The absence of admiration or esteem for someone or something, often resulting in discourteous or disparaging behavior.