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.

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Definitions:

Regulatory Policies

Rules or guidelines issued by governmental agencies to control or direct economic or social activities.

Negative Externalities

Economic activities that impose a cost on third parties who are not directly involved in the activity, such as pollution.

Noise-Control Regulations

Laws or policies implemented to limit the amount of noise pollution in an environment, aiming to protect public health and well-being.

Sawmill

A facility where logs are cut into lumber by machine, converting raw timber into boards and other forms of wood usable for construction.