TABLE 14.1 Uses the Information to Answer the Following Question(s)

question 38

Multiple Choice

TABLE 14.1
Uses the information to answer the following question(s) .
MetroCity 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 14.1. If MetroCity pays out 50% of its earnings from each subsidiary, what are the additional U.S. taxes due on the foreign sourced income from the Ukraine and Korea respectively.

• A) Ukraine = $0; Korea = ($30,000)
• B) Ukraine = $100,000; Korea = $0
• C) Ukraine = $0; Korea = $66,250
• D) None of the above

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Definitions:

Photovoltaic Panels

Devices that convert sunlight directly into electricity through the photovoltaic effect.

Biomass Energy

energy produced from organic materials, such as plant and animal waste, used as fuel.

Ethanol

A type of alcohol that is produced when corn, sugarcane, and other plant material is soaked in ammonia, fermented, and distilled.

Hydroelectric Dams

Structures built across rivers to control water flow and generate electricity through the movement of water through turbines.