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Avon's Foreign-Source Income. Avon is a U.S.-based direct seller of a wide array of products. Avon markets leading beauty, fashion, and home products in more than 100 countries. As part of the training in its corporate treasury offices, it has its interns build a spreadsheet analysis of the following hypothetical subsidiary eaming/distribution analysis. Une the tax analysis presented in the popup window for your basic structure a. What is the total tax payment, foreign and domestic combined for this incomo? b. What is the effective tax rate paid on this income by the US-based parent company? c. What would be the total tax payment and effective tax rate if the foreign corporate tax rate was 40% and there were no withholding taxes on dividends? d. What would be the total tax payment and effective tax rate if the income was earned by a branch of the U.S.corporation? a. What is the total tax payment, foreign and domestic combined for this incomo? (Round to the nearest dolar) b. What is the effective tax rate paid on this income by the US-based parent company [x (Round to one decimal place) c. What would be the totiv tax payment it the foreign corporate tax cute was 40% and there were no wetholding taxes on dividenda? (Round to the nearest dollar) What would be the effective tax rate it the foreign corporate tax rate was 40%, and there were no withholding taxes on dividends? IX (Round to one decimat place) d. What would be the total tax payment if the income was oamed by a branch of the US corporation? (Round to the nearest dollar Enter your answer in each of the wor boxes X 1 products in me bsidiary B Case 1 28% 38% 15% 100% 100% Case 2 40% 38% 0% 100% 100% pidends? Avon's Foreign-Sour Data Table 100 countries. As part eamings/distribution af Baseline Values a. What is the total tax b. What is the effective Foreign corporate income tax rate c. What would be the b U.S. corporate income tax rate d. What would be the Foreign dividend withholding tax rate d U.S. ownership in foreign firm a. What is the total tax Dividend payout rate of foreign firm (Round to the ne Foreign Subsidiary Tax Computation 1 b. What is the effective Taxable income of foreign subsidiary 2 Foreign corporate income tax % (Round to one 3 Net income available for distribution 4 Retained earnings c. What would be the 5 Distributed earnings 6 Distribution to U.S. parent company s (Round to the ne 7 Withholding taxes on dividends 8 What would be the effe Net remittance to U.S parent % (Round to one a U.S. Corporate Tax Computation on Foreign Income 9 Dividend received before withholding d. What would be the 10 Add back foreign deem-paid tax 11 Grossed-up foreign dividend (Round to the ne 12 Tentative U.S. liability $3,200,000 (1.280,000) $1,920,000 $3,200,000 (898,000) $2,304,000 0 2.304,000 2,304,000 345,600 $1,958,400 1.920,000 1,920,000 0 $1.920,000 $2,304,000 890,000 $3,200.000 1,216.000 $1,920,000 1.280,000 $3,200,000 1.216,000 Enter your answer in Print Done Avon's Foreign-Source Income. Avon is a U.S.-based direct seller of a wide array of products. Avon markets leading beauty, fashion, and home products in more than 100 countries. As part of the training in its corporate treasury offices, it has its interns build a spreadsheet analysis of the following hypothetical subsidiary eaming/distribution analysis. Une the tax analysis presented in the popup window for your basic structure a. What is the total tax payment, foreign and domestic combined for this incomo? b. What is the effective tax rate paid on this income by the US-based parent company? c. What would be the total tax payment and effective tax rate if the foreign corporate tax rate was 40% and there were no withholding taxes on dividends? d. What would be the total tax payment and effective tax rate if the income was earned by a branch of the U.S.corporation? a. What is the total tax payment, foreign and domestic combined for this incomo? (Round to the nearest dolar) b. What is the effective tax rate paid on this income by the US-based parent company [x (Round to one decimal place) c. What would be the totiv tax payment it the foreign corporate tax cute was 40% and there were no wetholding taxes on dividenda? (Round to the nearest dollar) What would be the effective tax rate it the foreign corporate tax rate was 40%, and there were no withholding taxes on dividends? IX (Round to one decimat place) d. What would be the total tax payment if the income was oamed by a branch of the US corporation? (Round to the nearest dollar Enter your answer in each of the wor boxes X 1 products in me bsidiary B Case 1 28% 38% 15% 100% 100% Case 2 40% 38% 0% 100% 100% pidends? Avon's Foreign-Sour Data Table 100 countries. As part eamings/distribution af Baseline Values a. What is the total tax b. What is the effective Foreign corporate income tax rate c. What would be the b U.S. corporate income tax rate d. What would be the Foreign dividend withholding tax rate d U.S. ownership in foreign firm a. What is the total tax Dividend payout rate of foreign firm (Round to the ne Foreign Subsidiary Tax Computation 1 b. What is the effective Taxable income of foreign subsidiary 2 Foreign corporate income tax % (Round to one 3 Net income available for distribution 4 Retained earnings c. What would be the 5 Distributed earnings 6 Distribution to U.S. parent company s (Round to the ne 7 Withholding taxes on dividends 8 What would be the effe Net remittance to U.S parent % (Round to one a U.S. Corporate Tax Computation on Foreign Income 9 Dividend received before withholding d. What would be the 10 Add back foreign deem-paid tax 11 Grossed-up foreign dividend (Round to the ne 12 Tentative U.S. liability $3,200,000 (1.280,000) $1,920,000 $3,200,000 (898,000) $2,304,000 0 2.304,000 2,304,000 345,600 $1,958,400 1.920,000 1,920,000 0 $1.920,000 $2,304,000 890,000 $3,200.000 1,216.000 $1,920,000 1.280,000 $3,200,000 1.216,000 Enter your answer in Print Done

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