TABLE 15.1 Use the Information to Answer Following Question(s)

question 4

Multiple Choice

TABLE 15.1
Use the information to answer following question(s) .
BayArea Designs Inc., located in Northern California, has two international subsidiaries, one located in the Ukraine, the other in Korea. Consider the information below to answer the next several questions.

-Refer to Table 15.1. How much in additional U.S. taxes would be due if BayArea averaged the tax credits and liabilities of the two foreign units, assuming a 50% payout rate from each?

• A) $3,750
• B) $13,750
• C) $2,500
• D) $0

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Definitions:

Despotic Practice

Actions or policies of a ruler or government exhibiting absolute power and often cruel, oppressive, or tyrannical control over its subjects.

Absolutism

A political theory and form of government where unlimited, complete power is held by a centralized sovereign individual, without checks or balances from any other part of the state or government.

Ottoman Empire

A historical empire founded at the end of the 13th century in northwestern Anatolia by the Turkish tribal leader Osman, lasting until the end of World War I.

Louis XIV

Known as the Sun King, he was a French monarch of the House of Bourbon who reigned for 72 years, making him the longest-reigning monarch in European history, noted for his absolute rule and the lavish Palace of Versailles.