Cane Corporation Owns 45% of the Stock of Edmonton Airline

question 79

Multiple Choice

Cane Corporation owns 45% of the stock of Edmonton Airline Corporation.In its first year of operations,Edmonton Airline,a Canadian corporation,earns $400,000 of E&P and pays a $100,000 dividend to Cane Corporation.Edmonton Airline pays $50,000 in Canadian income taxes.All amounts are expressed in U.S.dollars.What is Cane Corporation's deemed paid foreign tax credit for the dividend?

• A)$ 0
• B)$12,500
• C)$50,000
• D)none of the above

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Definitions:

Polluters

Individuals or entities that introduce pollutants or contaminants into the environment, causing pollution.

Environmental Standards

Regulations and criteria set by governmental bodies or international organizations to protect the environment and human health by limiting pollution and managing natural resource use.

Economically Efficient

Economically efficient refers to a situation where resources are allocated in a way that maximizes the net benefits to society or minimizes waste.

Pollution

The introduction of contaminants into the natural environment causing adverse change, often a byproduct of human activity.