A US Corporation Is Subject to an Income Tax Rate of of 35

question 42

Multiple Choice

A U.S. corporation is subject to an income tax rate of 35% and has a branch in the U.K., which paid the national corporate tax rate of 30% on its earnings there. The branch generated taxable income from operations in the U.K. equivalent to $2,000,000. What is the amount of the taxes owed to the U.S. government on the income generated in the U.K.?

• A) $600,000
• B) $700,000
• C) $100,000
• D) $0

---

Definitions:

Sound Wave

A type of pressure wave caused by the vibration of an object, which travels through a medium (such as air) and is perceived as sound when it reaches a human ear.

Frequencies

The number of occurrences of a repeating event per unit of time, often used in the context of sound waves or electromagnetic waves.

Virtual-Reality Goggles

Wearable devices that provide immersive digital experiences by simulating environments and visual perceptions.

Mannequin

A life-sized model of the human body, often used in retail to display clothes or in art for drawing reference.