If a USmultinational Corporation Incurs Start-Up Losses from Foreign Operations,which of the of the Following

question 78

Multiple Choice

If a U.S.multinational corporation incurs start-up losses from foreign operations,which of the following organizational forms provide immediate U.S.tax savings from the deduction of the losses?

• A)Operation through a foreign subsidiary
• B)Operation through a foreign branch
• C)Operation through a domestic subsidiary
• D)Both b.and c.

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Definitions:

Implicit Interest Rate

The interest rate inferred from the lease payments in a leasing agreement, indicating the cost of borrowing over the lease term.

Government-wide Financial Statements

Financial statements that present the financial position and the changes in financial position of all governmental activities, business-type activities, and aggregated discretely presented component units of the government.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.