During 2020, FTrike, a foreign subsidiary, distributes a $10 million dividend to Trikeco, a U.S....
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During 2020, FTrike, a foreign subsidiary, distributes a $10 million dividend to Trikeco, a U.S. C corporation. Assume that the U.S. corporate tax rate is 21% and the dividend incurs a withholding tax of 5%. As a result of the dividend, what is the foreign tax due and the U.S. tax due?
FTrike
Post-2017 undistributed e&p .................................. $90 million
Post-2017 foreign income taxes.............................. $36 million
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