Which of the Following Statements Is FALSE

question 36

Multiple Choice

Which of the following statements is FALSE?

• A)When the foreign tax rate is less than the U.S.tax rate,deferral can provide significant benefits.
• B)The U.S.tax liability is not incurred until the profits are brought back home if the foreign operation is set up as a foreign branch rather than as a separately incorporated subsidiary.
• C)If a company chooses not to repatriate £12.5 million in pre-tax earnings,for example,it effectively reinvests those earnings abroad and defers its U.S.tax liability.
• D)When the foreign tax rates exceed the U.S.tax rates,there are no benefits to deferral because in such a case there is no additional U.S.tax liability.

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Definitions:

Dimensional-analysis

A method in physics and engineering to check or determine the relationship between different kinds of physical quantities by identifying their dimensions of measurements.

Circuits

Electrical pathways through which electric current flows.

Mile

A unit of distance equal to 5,280 feet or approximately 1,609 meters.

Dimensional Analysis

A mathematical technique used to convert units of measurement.