Assume a Chinese affiliate repatriates as dividends one-quarterof the after-tax profits it earns (ie, dividend payout ratio =25%). If the income tax rate in China is 30% and there is awithholding tax of 15%, what is the effect on the parentcomany's US tax bill if the Chinese affiliate had pre-tax profitequal to $1,000,000 USD? Assume the US Tax rate is 35%.Please show work.
