Which of the Following Statements Is FALSE

question 42

Multiple Choice

Which of the following statements is FALSE?

• A)Other benefits from deferral arise because the firm effectively gains a real option to repatriate income at times when repatriation might be cheaper.
• B)By pooling foreign income,the firm effectively pays the combined tax rate on all foreign income.
• C)In years in which the U.S.tax rate exceeds the combined tax rate on all foreign income,the repatriation of additional income does not incur an additional U.S.tax liability,so the earnings can be repatriated tax free.
• D)Deferring repatriation of earnings lowers the overall tax burden in much the same way as deferring capital gains lowers the tax burden imposed by the capital gains tax.

---

Definitions:

Exam Scores

Numerical values assigned to evaluate the performance of students in examinations, often used as indicators of academic achievement.

Blinding

A methodology in experimentation where information about the test is masked from the participants to reduce bias.

Five-point Scale

A method of measurement that offers five distinct options to respondents, ranging from high to low or excellent to poor, for evaluation purposes.

Bottled Water

Packaged water sold in bottles and often treated to remove impurities and contaminants, offered as a portable and convenient choice for hydration.