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

question 95

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 $200,000 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) 17.33%
• C) 34.33%
• D) 35%

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