Use the Information for the Question(s)below

question 15

Multiple Choice

Use the information for the question(s) below.
KT Enterprises,a U.S.import-export trading company,is considering its international tax situation.KT's U.S.tax rate is 21%.KT has significant operations in both Japan and Ireland.In Japan the current exchange rate is ¥118.4/$ and earnings in Japan are taxed at 41%.In Ireland the current exchange rate is $1.27/€ and earnings in Ireland are taxed at 12.5%.KT's profits,which are fully and immediately repatriated,and foreign taxes paid for the current year are shown here (in millions) :
-After the Irish taxes are paid,the amount of the earnings before interest and after taxes in dollars from the Ireland operations is closest to:

• A)$5.1 million.
• B)$20.5 million.
• C)$35.6 million.
• D)$29.5 million.

---

Definitions:

Robber's Cave Study

An experiment on group conflict and cooperation conducted by Muzafer Sherif, demonstrating how intergroup hostility can be reduced through cooperative goals.

Self-affirmation

The act of recognizing and affirming one's abilities and values to maintain self-integrity and respond positively to threats to one's self-concept.

Competition

A situation in which individuals or groups strive against each other to achieve a goal that cannot be shared.

Cooperation

The process of groups or individuals working together towards a common goal, often resulting in mutual benefit and shared success.