Use the Information to Answer the Following Question(s)

question 1

Multiple Choice

Use the information to answer the following question(s) .
Green Valley Exporters USA has $100,000 of before-tax foreign income. The host country has a corporate income tax rate of 25% and the U.S. has a corporate income tax rate of 35%.
-Refer to Instruction 15.2. If the U.S. has a bilateral trade agreement with the host country that calls for the total tax paid to be equal to the maximum amount that could be paid in the highest taxing country, what is the total amount of income taxes Green Valley Exporters will pay to the host country, and how much will they pay in U.S income taxes on the foreign earned income?

• A) $25,000; $10,000
• B) $25,000; $26,250
• C) $35,000; $0
• D) none of the above

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Definitions:

Blanche K. Bruce

Blanche K. Bruce was an African American politician who served as a U.S. Senator from Mississippi during the Reconstruction era, becoming the first African American to serve a full term in the Senate.

Election of 1876

A highly contested U.S. presidential election that led to the Compromise of 1877, effectively ending Reconstruction and withdrawing federal troops from the South.

Rutherford Hayes

The 19th President of the United States (1877–1881), known for his efforts to reconcile the divisions left over from the Civil War and Reconstruction.

Reconstruction Policies

Refers to the strategies and laws implemented in the United States, particularly in the South, following the Civil War, aimed at reintegrating Confederate states and addressing the rights of freed slaves.