Falcon Networks
Falcon Networks Is a Leading Semiconductor Company with Operations

question 69

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 federal effective tax rate for 2012.

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

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Definitions:

Federal Law

Laws created by the national government that apply to all states and citizens within the federal system.

Plaintiff

A Plaintiff is an individual or legal entity that brings a lawsuit against another in a court of law, alleging harm or wrongdoing by the defendant.

Demurrer

A motion for dismissal of a case on the grounds that a plaintiff has failed to state a claim for which relief can be granted.

Affirmative Defense

A set of circumstances that indicates that a defendant should not be held liable, even if the plaintiff proves all of the facts in a complaint.