USA how to account for foreign tax paid for sub-company that has been closed out.

[LeahYue]

During year of 2017, parent company paid foreign income tax owned to foreign government after the foreign company has been closed out, how should i account this expense on parent company's books? do i just debit in foreign income tax expense, and credit out cash? we are a manufacturing company under percentage of completion method, should this expense be absorbed in overhead cost or regular administration expense?

 

[kirby]

do i just debit in foreign income tax expense, and credit out cash?
Yes
should this expense be absorbed in overhead cost or regular administration expense?
Regular admin expense

 

[LeahYue]

Thank you so much Kirby.