Miles,Ltd ,A Foreign Corporation,has a U

question 109

Multiple Choice

Miles,Ltd. ,a foreign corporation,has a U.S.branch that earns effectively connected earnings and profits (after income taxes) of $600,000 for the tax year.The branch's U.S.net equity at the beginning of the tax year is $2 million and at the end of the tax year is $2,800,000.Miles is in a nontreaty country.Miles' branch profits tax for the year is:

• A)$0.
• B)$180,000.
• C)$600,000.
• D)$2,800,000.

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Definitions:

360-Day Year

A simplified accounting method where the year is considered to have 360 days for the calculation of interest and other financial metrics.

Two Years

A period of time equal to 24 months or 730 days, typically used as a measure for planning or agreements.

Exact Interest

Interest calculated based on a 365-day year, used to provide a precise interest computation.

360-Day Year

A financial calculation convention using a simplified year of 360 days to facilitate easier interest calculations.