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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Definitions:

Retail Outlets

Physical stores where products are sold directly to consumers.

Retailing Mix

The combination of factors used by retailers to attract customers and sell goods, including product assortment, pricing strategies, promotional activities, and locations.

Diverse Portfolio

An investment strategy that spreads assets among various types of investments, industries, and geographic locations to manage risk.

Retail Mix

The combination of factors within a retail strategy, including product assortment, pricing, store layout, and promotional tactics aimed at influencing consumer behavior.