Which of the Following Statements Regarding the Translation of Foreign

question 97

Multiple Choice

Which of the following statements regarding the translation of foreign income taxes is true?

• A) Translation of foreign taxes into U.S. dollars helps manage the U.S. balance of trade.
• B) Foreign taxes are translated into U.S. dollars only when such translation provides a tax benefit to the taxpayer.
• C) Foreign taxes typically are paid in a foreign currency and, thus, must be converted to U.S. dollars when used as an FTC on a U.S. return.
• D) Translation of foreign taxes into U.S. dollars encourages foreign corporations to set up operations in the United States.

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Definitions:

Central Nervous System

Comprising the brain and spinal cord, it processes information and is the primary control center for the body.

Hormones

Chemical messengers produced by the endocrine glands, these compounds regulate various physiological functions and behaviors.

Neurotransmitters

Chemical messengers in the body that transmit signals from nerve cells to target cells.

Chemical Messengers

Substances in the body that transmit signals from one cell to another, often referred to as hormones or neurotransmitters.