Wood a us corporation owns holz a german corporation

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Income Tax Fundamentals 2020
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Chapter 2 / Exercise 17
Income Tax Fundamentals 2020
Altus-Buller/Whittenburg
Expert Verified
60. Wood, a U.S. corporation, owns Holz, a German corporation. Wood receives a dividend (non-Subpart F income) from Holz of 75,000€. The average exchange rate for the year is $1US: 0.6€, and the exchange rate on the date of the dividend distribution is $1US: 0.80€. Wood’s exchange gain or loss is: A. $15,000 loss.B. $15,000 gain.C. $75,000 gain.D.$0. There is no exchange gain or loss on a dividend distribution.
61. Wood, a U.S. corporation, owns 30% of Hout, a foreign corporation. The remaining 70% of Hout is owned by other foreign corporations not controlled by Wood. Hout’s functional currency is the euro. Wood receives a 50,000€ distribution from Hout. If the average exchange rate for the E & P to which the dividend is attributed is 1.2€: $1, the exchange rate at year end is .95€: $1, and on the date of the dividend payment the exchange rate is 1.1€: $1, what is Wood’s tax result from the distribution?
62. Generally, accrued foreign income taxes are translated at the:
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Income Tax Fundamentals 2020
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Chapter 2 / Exercise 17
Income Tax Fundamentals 2020
Altus-Buller/Whittenburg
Expert Verified
63. Which of the following statements regarding the translation of foreign income taxes is true?
64. GoldCo, a U.S. corporation, incorporates its foreign branch in a § 351 exchange, creating GreenCo, a wholly owned foreign corporation. GoldCo transfers $200 in inventory (basis = $50) and $900 in land (basis = $950) to GreenCo. GreenCo uses these assets in carrying on a trade or business outside the U.S. What gain or loss, if any, does GoldCo recognize as a result of this transaction? A. ($50).B. $0. C. $100.D.$150.

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