Q in 2000 san fernando shipped 300 diamond drill bits to

Assignment Help Financial Accounting

Reference no: EM13352031

Q: In 2000 San Fernando shipped 300 diamond drill bits to its subsidiary in Ecuador. The drill bits were shipped at San Fernando's cost of $1 million each to keep away from Ecuador's duty of 20%. In 2000 Ecuador's income tax on foreign subsidiaries was 35% and the U.S. corporate tax rate was 35%. In 2001 Ecuador proposes to raise the corporate tax rate to 45%, eradicate duties, and impose a 10% VAT. The U.S. rate will remain the same.

1. What action could San Fernando take on its export pricing?

2. What probable U.S. government action may result from your decision in 1?

Reference no: EM13352031

Questions Cloud

Q1when the united states tax reform act tra of 1986 was : q1.when the united states tax reform act tra of 1986 was enacted the normal corporate tax rate in the united states

Q1 harry is hospitalized with bacterial pneumoniawhile you : q1. harry is hospitalized with bacterial pneumonia.while you visit him his teeth are chattering his skin is cool and

Q1 how does glutamic acid provide a source of carbon for : q1. how does glutamic acid provide a source of carbon for gluconeogenesis? note down the pathway involved showing each

Q1 hypophosphatemia vitamin d-resistant rickets is : q1. hypophosphatemia vitamin d-resistant rickets is inherited as the sex-linked dominant trait. the relevant gene is

Q in 2000 san fernando shipped 300 diamond drill bits to : q in 2000 san fernando shipped 300 diamond drill bits to its subsidiary in ecuador. the drill bits were shipped at san

Raphael corporations common stock is presently selling on a : raphael corporations common stock is presently selling on a stock exchange at 85 per share at its current balance sheet

Q1 the venom of many cobras contains a potent neurotoxin : q1. the venom of many cobras contains a potent neurotoxin that binds to ligand-gated na channels causing them to open.

Q1 in peaches homozygous condition gogo produces oval : q1. in peaches homozygous condition gogo produces oval glands at the base of the leaves the heterozygous genotype goga

Q1 parasite schistosoma mansoni infects humans by : q1. parasite schistosoma mansoni infects humans by penetrating the skin. the larva secretes enzymes that catalyze the

User Account

All Pages