<span>) Imagine you have a friend who lives in an exciting place you have never visited: New York City, Ciudad de Mexico, etc. You are about to visit your friend for the first time, you are excited and have many things you want to do, but also have a lot of questions. On a sheet of paper, write a letter to your friend to prepare for your trip. </span>
Over the weekend, I like to catch up on my readings, go to the cinema and watch some tv shows. As during the week, I don't have much time, because of school and my work, the weekend is the ideal time for that.
Do you play any sport?
I like to play basketball with my brothers. I don't know if this can be considered sport, but I usually go fishing with my dad once a month.
During the week, what do you usually do besides study and work?
I don't like to do much during the week, but I go for a run in the evening and take my dog for a walk. I usually run about 3 kilometers, sometimes less, because my routine is very tiring.
What's the point of running late afternoon for you?
The importance is to exercise. It's important for us to exercise regularly even if it's little, isn't it? I do this more so as not to lose my habit and help with health.
You said you like to catch up on your weekends. Do you participate in any book clubs or anything?
No. I have been to a book club in the past, but I quit because I like to read what I want right now. In the book club you should read what is chosen by you and I like to choose my readings.
You said you like going to the movies and watching TV shows. What types of movies and which TV shows do you like?
I like watching Super Heroes movies at the movies, but I see anything that catches my attention and about the TV shows, I like to watch Doctor Who.
Would you like to play any sport?
Yes, I would like to swim, but I can't swim (laughs), but I would like to learn.
A. = (15% X $2M) + (21% X $2M) = $720,000. Since there is no mechanism for mitigating double taxation, the branch profit will be taxed on the to tax rate of 15% and 21% which is $300,000 and $420,000.
B. The total tax for $2m branch profit if US corporations can remove foreign based profit from US taxation will be just the 15% x $2m = $300,000.
C.If they are allowed to take deductions for foreign income taxes, the total tax on the $2m branch profit will be (21% -15%) x $2m = $120,000.
D.1. If credit are allowed for foreign income tax paid, total tax will be ($2m - $300,000 been foreign tax paid) x 21% = $357,000
If the charge foreign income taxes at 30% and US corporations can claim refundable credit for foreign income tax paid on foreign source income = ($2m - $300,000 been the foreign income tax paid) = $1 700,000 x 30% = $510,000