Falcon Networks Is a Leading Semiconductor Company with Operations in 17

question 63

Multiple Choice

Falcon Networks is a leading semiconductor company with operations in 17 different countries. Information about the company's taxes appears below:
$\text {Falcon Not works}$
$\text {Components of Income Tax Expense}$
$\text {(in millions) }$


$\begin{array}{llcc} \text { } &2012&2011 \\ \text { Current - Federal } &\$55.65&\$47.52\\ \text {\quad\quad - Foreign } &83.85&78.95\\ \text { \quad\quad - State and Local} &\underline{14.69}&\underline{12.5}\\ \text {Total Current } &\$154.19&\$138.97\\\\ \text {Deferred - Federal } &\$30.28&\$42.90\\ \text { \quad\quad - Foreign} &\underline{23.89}&\underline{14.58} \\ \text {Total Deferred } &\$54.17&\$57.48\\\\ \text { Total Income Tax Expense } &\underline{\$208.36}&\underline{\$196.45}\\\\ \text { Note: Falcon Networks has no curent liability at year-end withrespect to total current taxes. } &\\\\ \text { Components of Income before Taxes } &2012&2011\\ \text { United States } &\$256.35&\$253.68\\ \text {Foreign } &\underline{236.85}&\underline{198.85}\\ \text {Total } &\underline{\$493.20}&\underline{\$452.53}\\\end{array}$
-
Using the information provided by Falcon Networks determine the federal effective tax rate for 2012.

• A) 33.52%
• B) 35.00%
• C) 42.25%
• D) 45.49%

---

Definitions:

Visual Picture

Concerns the representation of objects, scenes, or ideas in a form visible to the eye, such as photographs, drawings, or images on a screen.

Products

Items or services offered to the market for sale, consumption, or use, fulfilling a need or want.

Global Segmentation

The practice of dividing a worldwide market into smaller segments of consumers who share similar needs, characteristics, or behaviors.

Financial Savings

Refers to the portion of disposable income not spent on current expenditures or consumed, often set aside for emergencies, future purchases, or investments.