Which of the Following Foreign Taxes Are Not Creditable for U.S

question 97

Multiple Choice

Which of the following foreign taxes are not creditable for U.S. tax purposes?

• A) Direct taxes paid by a U.S. corporation on income earned in a foreign branch.
• B) Withholding taxes imposed on a dividend received by a U.S. corporation from its 100 percent owned foreign subsidiary.
• C) Deemed paid taxes on a dividend received by a U.S. corporation from its 100 percent owned foreign subsidiary.
• D) All of these taxes are creditable.

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where demand and supply are equal.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.

Relatively Inelastic

A situation where a change in the price of a good or service causes a comparatively smaller change in the quantity demanded or supplied.