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:

Authority

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Ancient Greeks

A civilization belonging to a period of Greek history that lasted from the Dark Ages (about 1200 BCE) to the end of antiquity (circa 600 AD) and contributed significantly to language, politics, educational systems, philosophy, science, and the arts.

Good Society

A concept or vision of a society that is just, equitable, inclusive, and provides a high quality of life for all its members.

Distributive Justice

The ethical principle concerned with the fair allocation of resources and wealth among all members of a society.