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Davenport ACCT640 Chapter 25 - Taxation of International Transactions ? Quiz




Question;Davenport ACCT640 Chapter 25 - Taxation of International;Transactions ? Quiz;Review Test Submission: Chapter 25 Quiz;Instructions;? Question;1;2 out of 2 points;A foreign corporation, not;resident in a treaty country, has a U.S. branch that earns effectively;connected E & P of $4 million for the tax year and increases its;investments in U.S. property (its U.S. net equity) by $1,600,000. It pays a;U.S. corporate income tax of $2,153,846. Its branch profits tax is;Answer;? Question;2;2 out of 2 points;The purpose of the transfer;pricing rules is to ensure that taxpayers have ultimate flexibility in shifting;profits between related entities.;? Question;3;2 out of 2 points;All of an NRA?s U.S.-source;income that is not effectively connected with a U.S. trade or business is;subject to a flat U.S. income tax rate of 30% unless modified by a treaty.;? Question;4;2 out of 2 points;Which of the following statements;regarding income sourcing is not correct?;? Question;5;2 out of 2 points;Shannon, a foreign person with a;green card, spends the following days in the United States.;2008 360 days;2009 150 days;2010 30 days;Shannon?s residency status for 2010 is;? Question;6;2 out of 2 points;Which of the following;determinations does not require knowing the amounts of one?s U.S.- versus;foreign-source income?;? Question;7;2 out of 2 points;Miles is a citizen of France and;does not have permanent resident status in the United States. During the last;three years he has spent a number of days in the United States.;Current year ? 150 days;First prior year ? 150 days;Second prior year ? 90 days;Is Miles treated as a U.S. resident for the current year?;? Question;8;2 out of 2 points;Which of the following statements;regarding a foreign person?s U.S. tax consequences is true?;? Question;9;2 out of 2 points;In allocating interest expense;between U.S. and foreign sources, a taxpayer must use the tax basis of assets;in determining the proper interest apportionment.;? Question;10;2 out of 2 points;SunCo, a domestic corporation;owns a number of patents related to designing sunglasses. SunCo licenses these;patents to unrelated parties. SpainCo, a Spanish corporation, paid SunCo;$78,000 in royalties related to these licenses. SpainCo uses the patent;information in its manufacturing process in its Texas plant. WiscCo, a domestic;corporation, paid SunCo $32,000 in royalties related to the licenses. WiscCo;uses the patent information in its manufacturing process in its German;manufacturing plant. How much foreign-source royalty income did SunCo earn from;these licenses?


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