Mega, Inc, a U $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

question 55

Multiple Choice

Mega, Inc., a U.S. multinational, has pretax U.S. source income and foreign source income as follows.
Corporate tax rate schedule
U.S. source income $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 760,000
Foreign source income-Country M $\quad$$\quad$$\quad$ 80,000
Total $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 840,000
Mega paid $15,000 income tax to Country M. 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

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Definitions:

Horizontal Communication

The exchange of information, ideas, and messages between peers or colleagues at the same level within an organization.

Communicator

An individual or entity that conveys information or expresses ideas through various means of communication, such as speaking, writing, or gestures.

Semantic Filters

Information processing mechanisms that selectively interpret and give meaning to communication based on personal experiences and knowledge.

Attitudes

A settled way of thinking or feeling about something, typically reflected in a person's behavior.