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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
14.  LO.6 Velocity, Inc., a foreign corporation, operates a U.S. branch. It reports the fol- lowing tax results and other information for the year.
|
Pretax earnings effectively connected with a U.S. trade or   business |
$900,000 |
|
U.S. corporate tax (at 34%) |
306,000 |
|
Remittance to home  office |
400,000 |
|
Increase in U.S. net equity |
194,000 |
a.     Compute Velocity’s dividend equivalent amount for the tax  year.
b.    Determine Velocity’s liability for the branch profits tax for the year.
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