Assignment:
Q1. Suppose a firm earns $1 million before tax in Spain. It pays Spanish tax of $0.52 million and remits the remaining $0.48 million as a dividend to its U.S. parent. Under current U.S. tax law, how much U.S. tax will the parent owe on this dividend?
Q2. Suppose a French affiliate repatriates as dividends all the after-tax profits it earns. If the French income tax rate is 50% and the dividend withholding tax is 10%, what is the effective tax rate on the French affiliate’s before-tax profits, from the standpoint of its U.S. parent?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.