Assume That U

question 35

Multiple Choice

Assume that U.S.MNE A earns $100,000 of foreign source income, that the tax rate in the foreign country is 40 percent, and that the tax rate in the United States is 35 percent.How much total (both domestic and foreign) tax would the company pay on that foreign source income, assuming that the tax credit principle applies?

• A)$40,000
• B)$35,000
• C)$75,000
• D)$5,000

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Definitions:

Land Surface

Land surface refers to the solid portion of the Earth's surface that is not covered by water, including everything from mountains and valleys to plains and beaches.

Isostatic Rebound

The rise of land masses after the removal of the weight of ice sheets or glaciers, a process of Earth’s crust returning to its equilibrium position over geological time scales.

West Antarctica

The portion of Antarctica that lies west of the Transantarctic Mountains, known for its ice sheets and dynamic glacial activity.

Global Sea Levels

Refers to the average height of the ocean's surface between the high and low tide, which has been rising due to climate change.