The Subsidiary of a U

question 31

Multiple Choice

The subsidiary of a U.S.corporation located in Country Y generated income of $1,000,000 on which it paid $200,000 in taxes to Country Y.The subsidiary paid a dividend to the U.S.parent of $150,000.How much tax is currently owed to the U.S.government if the federal tax rate is 35%?

• A)$35,625
• B)$28,125
• C)$52,500
• D)$32,500

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Definitions:

Arousal Theory

A theory of motivation that suggests people seek to maintain an optimal level of arousal, not too high or too low, for optimal performance.

Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli, not learned through experience.

Homeostasis

The process by which living organisms regulate their internal environment to maintain a stable, constant condition.

Hierarchy of Needs

A theory in psychology proposed by Abraham Maslow that outlines a five-tier model of human needs, ranging from basic physiological needs to self-actualization.