Use the Information to Answer the Following Question(s)

question 48

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 15.1.If the U.S.treated the taxes paid on income earned in the host country as a tax-credit,then Green Valley's total U.S.corporate tax on the foreign earnings would be:

• A) $51,250.
• B) $35,000.
• C) $26,250.
• D) $10,000.

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Definitions:

Norms

Accepted standards or ways of behaving in a group, society, or culture, which guide the actions and expectations of its members.

Lifestyles

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.

Supply Side

Economic theory emphasizing the importance of policies that affect the production and supply in an economy, including investment in capital and labor efficiency.