RadioCo, a domestic corporation, owns 100% of TVCo, a manufacturing facility in Ireland. TVCo has no operations or activities in the United States. The U.S. tax rate is 35%, and the Irish tax rate is 12.5%. For the current year, RadioCo earns $200,000 in taxable income from its U.S. operations. TVCo earns $800,000 in taxable income from its operations, pays $100,000 in taxes to Ireland, and makes no distributions to RadioCo.
For tax rates, enter your answers as a percentage.
a. Enter the correct amounts below for Without ASC 740-30 (APB 23) and With ASC 740-30 (APB 23).
Without ASC 740-30 (APB 23):
RadioCo's total tax expense and effective tax rate for book purposes is $___________ and ____________ %.
With ASC 740-30 (APB 23):
RadioCo's total tax expense and effective tax rate for book purposes is $__________ and ________________ %.