Repatriating Prior Year Earnings from a Foreign Subsidiary Located in a Low-Tax

question 43

True/False

Repatriating prior year earnings from a foreign subsidiary located in a low-tax country where ASC 740-30 (APB 23) benefits were previously adopted will decrease a corporation's current year effective tax rate.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, affecting its liquidity.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Present Value

The calculation of the current value of a sum of money or stream of cash flows that is to be received in the future, discounted at a specific rate.

Dollar Outlays

The total amount of money spent or invested in a particular project, purchase, or endeavor, often used in budgeting and financial planning.