US Tax Assignment
13 Compute the amount of additional US tax a company will owe given the following related data. $ 2,000,000 Pre-tax foreign income $ 640,000 Foreign tax paid $ 1,360,000 Dividend from foreign subsidiary 35% US tax rate (all figures translated into US dollars) A b A 40,800 60,000 476,000 700,000 A A 14 The Crescere corporation, an Italian firm, has purchased an asset in Canada which will generate €1.5MM in annual depreciation charges (converted at the current spot rate) at the end of each year for 10 years.
Assuming inflation in Italy will be 6.42%, inflation in Canada will be 3.20%, and the Italian tax rate is 27.5%, what is the expected real value in today's currency of the depreciation on taxes at the end of year 5? a b c € 0.797 MM €0.302 MM € 0.400 MM € 0.352 MM. .