Fleming Corporation, a U Fleming Paid $50,000 Income Tax to CountryA

question 35

Multiple Choice

Fleming Corporation, a U.S. multinational, has pretax U.S. source income and foreign source income as follows. $\begin{array}{lr}\text { U.S. source income } & \$ 1,000,000 \\\text { Foreign source income-Country A } & 500,000 \\\text { Total } & \$ 1,500,000\end{array}$ Fleming paid $50,000 income tax to CountryA. If Fleming takes the foreign tax credit, compute its worldwide tax burden as a percentage of its pretax income.

• A) 34%
• B) 35%
• C) 44%
• D) 45%

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Definitions:

Segregation

The enforced separation of different racial groups in a country, community, or establishment, often marked by discriminatory laws and practices.

Civil Rights Movement

A struggle for social justice in the United States during the 1950s and 1960s, aimed at ending racial segregation and discrimination against African Americans.

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Postwar Period

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