Placard, a Multinational Corporation Based in the U

question 163

Essay

Placard, a multinational corporation based in the U.S., has used ASC 740-30 (APB 23) to avoid reporting any U.S. deferred tax expense on $50 million of the earnings of its foreign subsidiaries. All of these subsidiaries operate in countries with lower tax rates than those of the U.S. When the profits eventually are repatriated, how is Placard's effective tax rate affected on its GAAP financial statements?

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Definitions:

Satisfy Customers

Meeting or exceeding the expectations and needs of consumers to ensure their contentment with a product or service.

Customer Inquiry

Any question or request for information from a customer regarding a company's products or services.

Promote Business

Promoting a business involves using various strategies and communication methods to increase awareness, attract new customers, and enhance its reputation.

Acceptance Message

Involves communication that indicates the reception and agreement to a proposal or offer.