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:

Narcotics

A class of depressant drugs derived from the opium poppy that produce both pain-relieving and calming effects.

Marijuana

A psychoactive drug derived from the Cannabis plant, used for recreational or medicinal purposes, affecting mood, perception, and cognitive functions.

Stimulant

A substance that increases activity in the central nervous system or the body, leading to increased alertness and physical activity.

Narcotic

A class of drugs that reduce pain, alter mood and behavior, and usually induce sleep or stupor; often leading to dependence.