Please define and Explain the difference between Worldwide and Territorial tax policies. (B) Please define and explain current US tax policy relative to overseas profit. (C) Assume Company A has two foreign subsidiaries, X and Y. Company A has a 30% domestic tax rate. The current year probability for the two subsidiaries is as follows:
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X
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Y
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Pre tax profit
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2000
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1500
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Taxes
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-900
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-300
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Net income
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1100
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1200
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Assume Company A dividends all current year Net Income from the two subsidiaries. Please calculate what US taxes are due or what Express Foreign Tax credits are generated by such a dividend policy