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

question 17

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 Irish and Japanese subsidiaries did not exist,the U.S.tax liability on the Mexican subsidiary would be closest to:

• A)$0.
• B)$9 million.
• C)$39 million.
• D)$106 million.

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Definitions:

Research Hypothesis

A specific, testable prediction about the relationship between at least two variables in a population, based on theory or previous research.

Independent Variable

A variable that is manipulated by the researcher to observe its effect on the dependent variable.

Research Hypothesis

A specific, clear, and testable statement predicting a particular outcome or difference based on theoretical grounds or previous research.

Power-Oriented Practices

Actions or strategies aimed at establishing, maintaining, or demonstrating power or authority within a social or organizational context.