Mega, Inc, a U Mega Paid $15,000 Income Tax to Country M

question 66

Multiple Choice

Mega, Inc., a U.S. multinational, has pretax U.S. source income and foreign source income as follows: $\begin{array}{lr}\text {U. S. source income }&\$760,000\\\text { Foreign source income-Country \( M \) }&80,000\\\text {Total }&\$840,000\\\end{array}$
Mega paid $15,000 income tax to Country M. Assume Mega's foreign source income does not qualify as foreign-derived intangible income. Mega has a $25,000 foreign tax credit carryforward. What is Mega's U.S. tax liability if it takes the foreign tax credit?

• A) $16,800
• B) $136,600
• C) $176,600
• D) $159,600

Assess the initial and operational cash flows associated with capital investments, including changes to net working capital.

Calculate and interpret key financial metrics (e.g., net present value [NPV], earnings before interest and taxes [EBIT], and operating cash flow) to make informed investment decisions.

Evaluate the impact of new projects on a company's existing operations, including sales erosion and contribution margin analysis.

Understand and apply the concept of equivalent annual cost in comparing projects with different lifespans.

---

Definitions:

ATP

Adenosine triphosphate, a molecule that provides energy for many processes within living cells.

Extracellular Matrix

A complex network of proteins and carbohydrates surrounding cells, providing structural and biochemical support to surrounding cells.

Facilitated Diffusion

A process of passive transport, facilitated by transport proteins, allowing molecules to move across cell membranes along a concentration gradient without energy expenditure.

Active Transport

The movement of substances across cell membranes against their concentration gradient, requiring energy.