How Is It Possible for a U

question 31

Multiple Choice

How is it possible for a U.S. firm to have an effective tax rate that is less than the U.S. federal statutory tax rate?

• A) The firm has expenses that are not deductible for tax purposes.
• B) Tax rates in foreign countries where the firm operates are higher.
• C) Tax rates in foreign countries where the firm operates are lower.
• D) It is not possible for a firm to have an effective tax rate different from the U.S. federal statutory tax rate.