Use the Following Information to Answer the Question(s)below

question 17

Multiple Choice

Use the following information to answer the question(s) below.
Incorporated Tool,a U.S.firm,is considering its international tax situation.The corporate tax rate in the United States is currently 21%.Incorporated Tool has major operations in Ireland,where the tax rate is 12.5%,Japan where the tax rate is 40.7%,and Mexico,where the tax rate is 30.0%.Incorporated Tool's profits,which are fully and immediately repatriated,and foreign taxes paid for the current year are as follows:
-Assuming that the Irish and Japanese subsidiaries did not exist,the U.S.tax liability on the Mexican subsidiary would be closest to:

• A)$0.
• B)$9 million.
• C)$39 million.
• D)$106 million.

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Definitions:

Pollution Tax

A tax imposed by governments on emissions generated by businesses and industries, aimed at reducing environmental damage.

Marginal Benefit

The additional benefit received from consuming one more unit of a good or service.

Pollution Tax

A tax levied on activities that produce pollution in order to incentivize the reduction of environmental externalities.

Total Emissions

The sum of all pollutants released into the environment from various sources, often measured to assess environmental impact.