Fleming Corporation, a U $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

question 62

Multiple Choice

Fleming Corporation, 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$$\quad$ $ 1,000,000
Foreign source income-Country A $\quad$$\quad$$\quad$$\quad$ 500,000
Total $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 1,500,000
-Fleming paid $50,000 income tax to Country A. If Fleming takes the foreign tax credit, compute its worldwide tax burden as a percentage of its pretax income.

• A) 21%
• B) 34%
• C) 33%
• D) 17.33%

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Definitions:

Repaired

The process of fixing or mending something that was broken or damaged.

Incidental Supplies

Items or materials used in the course of medical care or treatment that are not directly related to a specific patient's diagnosis or treatment.

Occasionally Reordered

The process of arranging items or tasks at irregular intervals, rather than on a regular basis.

Thrown Away

Discarded or disposed of, typically referring to objects or materials considered no longer useful or desired.