Which of the following is most likely to be considered a profit center?

Answer:

The selling price of the bond is $6,154

Explanation:

Given data

face value = $5,000

interest = 8% of face value

rate = 6.5%

To determine

the bond's selling price

solution

we will calculate the interest associated with

interest = 8% × 5,000

interest = 400

Let’s assume the bond’s selling price is x

where

the bond selling equation will be

interest = rate × bond selling price

400 = 0.065 × x

x = 6,154

Thus, the bond’s selling price is $6,154

Answer:

Eiffel Corporation

Tax implications for Tower:

Withholding tax = €2,500 x $1.50 = $3,750.00

Domestic Corporation tax = 156,712.50

Overall tax effect = $160,462.50

Explanation:

a) Inputs and Calculations:

Dividend = €500,000

Withholding tax = €2,500

After withholding tax = €497,500

Exchange rate = €1 = $1.50

Consequently, net dividend after withholding tax = €497,500 x $1.50

= $746,250

Corporate tax rate = 21% of $746,250

= $156,712.50

Tower incurs a withholding tax of $3,750 when converted to dollars and faces a corporation tax on earnings amounting to $156,712.50, calculated under the TCJA tax rate of 21%, a reduction from the previous 35%.