David, an employee of Lima Corporation, is a U.S. citizen and the regional sales manager for South America. His office is in Miami, and he spends nine months each year for business in South America. Which of the following statements about the treatment of his income from Lima Corporation is correct?
A. He must include his income from Lima Corporation in his gross income and is not allowed a tax credit for any South American taxes paid.
B. He has the option of either to exclude $105,900 of his income from Lima Corporation or take a tax credit for taxes paid in South America.
C. Because he is in South America only for nine months in the year, he is only allowed to exclude $79,425 of his income from Lima Corporation.
D. Because he is in South America only for nine months in the year, he is not allowed to exclude any of his income from Lima Corporation, but he can take a tax credit for any taxes paid in South America.
Answer: D
You might also like to view...
On December 31 of the current year, Holmgren Company's bookkeeper made an entry debiting Supplies Expense and crediting Supplies on Hand for $12,600 . The Supplies on Hand account had a $15,300 debit balance on January 1 . The December 31 balance sheet showed Supplies on Hand of $11,400 . Only one purchase of supplies was made during the month, on account. The entry for that purchase was
a. debit Supplies on Hand, $8,700 and credit Cash, $8,700. b. debit Supplies Expense, $8,700 and credit Accounts Payable, $8,700. c. debit Supplies on Hand, $8,700 and credit Accounts Payable, $8,700. d. debit Supplies on Hand, $16,500 and credit Accounts Payable, $16,500.
Explain the major differences between public relations, advertising, and marketing
What will be an ideal response?
Assume 4 separate purchases of 100 units of the same item in order at the following prices: 100 @ $0.25 each; 100 @ $0.23 each; 100 @ $0.21 each and 100 @ $0.26 each. An ending inventory count showed 230 of the items still in stock. Under the FIFO method, cost of ending inventory is:
a. $53.90 b. $54.30 c. $59.30 d. $53.40 e. $55.00
Identify the infinitive phrase in the sentence. Is she spending a semester abroad to improve her Spanish?