Which of the Following Statements Concerning the Taxation of a U.S

question 48

Multiple Choice

Which of the following statements concerning the taxation of a U.S. multinational corporation is true?

• A) A U.S. corporation is taxed by the United States only on its U.S. source income.
• B) The foreign tax credit ensures that a U.S. corporation will never pay taxes at a higher rate than the one imposed by the U.S. tax law.
• C) Cross-crediting allows a U.S. corporation to maximize its foreign tax credit.
• D) The foreign tax credit allows a U.S. corporation to defer taxation of its foreign source income until the earnings are repatriated.