Falcon Networks
Falcon Networks Is a Leading Semiconductor Company with Operations

question 41

Multiple Choice

Falcon Networks
Falcon Networks is a leading semiconductor company with operations in 17 different countries.Information about the company's taxes appears below:
$\begin{array}{l}\begin{array}{lll} \text { Falcon Networks}\\ \text { Components of Income Tax Expense}\\ \text { (in millions) }\\\\ \text { Current - Federal}\\ \text { - Foreign}\\ \text { - State and Local}\\ \text { Total Current}\\ \text { Deferred - Federal}\\ \text { - Foreign}\\ \text { Total Deferred}\\ \text { Total Income Tax Expense}\\ \text { Note: Falcon Networks has no current liability at year-end with }\\ \text { respect to total current taxes.}\\ \text { Components of Income before Taxes}\\ \text { United States}\\ \text { Foreign}\\ \text { Total}\\\end{array}\begin{array}{lll}\\\\\\\mathbf{2 0 1 2} & \mathbf{2 0 11} \\\$ 55.65 & \$ 47.52 \\83.85 & 78.95 \\\underline{14.69} & \underline{12.5} \\\$ 154.19 & \$ 138.97 \\\$ 30.28 & \$ 42.90 \\\underline{23.89} &\underline{14.58}\\\$ 54.17& \$ 57.48 \\\underline{\$ 208.36}& \underline{\$ 196.45} \\\\\\\mathbf{2 0 1 2} & \mathbf{2 0 1 1} \\\$ 256.35 & \$ 253.68 \\\underline{236.85} & \underline{198.85}\\\underline{\$ 493.20}&\underline{\$ 452.53}\end{array}\end{array}$
-Using the information provided by Falcon Networks determine the combined effective tax rate for 2012.

• A) 33.52%
• B) 35.00%
• C) 42.25%
• D) 45.49%

---

Definitions:

Optimal Consumption

The point at which an individual's utility from consuming goods and services is maximized, given their budget constraints.

Budget Constraint

Denotes the limit on the consumption bundles that a consumer can afford given their income and the prices of goods.

Listening to Jazz

The activity of actively engaging in the auditory experience provided by jazz music, a genre known for its complex harmonies and improvisational elements.

Living Arrangements

The setup or configuration of housing and the people with whom one resides, which can vary widely from living alone to sharing a dwelling with others.