Greenco, a u. s. corporation, earns $25 million of taxable income from u. s. sources and $10 million of taxable income from foreign sources. what amount of taxable income does greenco report on its u. s. tax return?

Question

Brody Guzman

Business

21 November, 01:19

Greenco, a u. s. corporation, earns $25 million of taxable income from u. s. sources and $10 million of taxable income from foreign sources. what amount of taxable income does greenco report on its u. s. tax return?

+1

Answers (1)

Know the Answer?

Carley · Answer 1

Taxable income is the sum of income used to compute a person's or a business's income tax due. Taxable income comprises salaries, pays, bonuses and tips, on top of investment revenue and unearned revenue. In this case, the corporation have $25 million that came from US Sources then the additional $10 million is also part of the taxable income because it is part of the normal course of the business. Therefore, GreenCo must report $35 million.