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:

Encoding

Converting details into a structure suitable for preservation in memory.

Repressed Memories

Memories repressed without awareness due to their connection with severe stress or traumatic events.

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A trance-like state of focused attention and heightened suggestibility, often accompanied by relaxation and vivid imagery.

Misinformation

False or inaccurate information that is spread intentionally or unintentionally, without the intent to deceive.