Use the Following Information to Answer the Question(s)below

question 22

Multiple Choice

Use the following information to answer the question(s) below.
Incorporated Tool,a U.S.firm,is considering its international tax situation.The corporate tax rate in the United States is currently 21%.Incorporated Tool has major operations in Ireland,where the tax rate is 12.5%,Japan where the tax rate is 40.7%,and Mexico,where the tax rate is 30.0%.Incorporated Tool's profits,which are fully and immediately repatriated,and foreign taxes paid for the current year are as follows:
-Assuming that the Japanese and Mexican subsidiaries did not exist,the U.S.tax liability on the Irish subsidiary would be closest to:

• A)$34 million.
• B)$103 million.
• C)$106 million.
• D)$156 million.

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Definitions:

Trend Equation

A mathematical formula that fits a line to a set of data points in a way that best expresses the relationship and tendency over time.

Seasonal Indexes

Quantitative measures that adjust for seasonal variations in data, allowing for more accurate comparison across different time periods.

Centered Moving Averages

A type of moving average that smoothes out short-term fluctuations in a time series dataset by averaging a subset of terms at a time, centered around each point in the series.

Quarterly

Pertaining to a period of three months or occurring four times a year.