World Sales,Inc

question 104

Multiple Choice

World Sales,Inc.,a U.S.multinational,had pretax U.S.source income and foreign source income as follows: World Sales paid $50,000 income taxes to Country O.What is World Sale's U.S.tax liability if it deducts the foreign taxes paid?

• A)$147,000
• B)$97,000
• C)$136,500
• D)$221,000

---

Definitions:

Lock-Up Option

A contractual agreement where shareholders are prohibited from selling their shares for a specified period following an initial public offering (IPO).

Tender Offer

A tender offer is a proposal made by an entity to the shareholders of another company to purchase some or all of their shares at a specified price for a limited time.

Business Judgment Rule

A legal principle that protects company directors and officers when making business decisions that are informed and made in good faith.

Co-Determination

A practice where workers have a role in management of a company, often through participation in management boards or committees.