Use the Information to Answer the Following Question(s)

question 12

Multiple Choice

Use the information to answer the following question(s) .
Rogue River Exporters USA has $100,000 of before tax foreign income. The host country has a corporate income tax rate of 25% and the U.S. has a corporate income tax rate of 35%.
-Refer to Instruction 20.1. If the U.S. treated the taxes paid on income earned in the host country as a tax-credit, then Rogue River's total U.S. corporate tax on the foreign earnings would be ________.

• A)$51,250
• B)$35,000
• C)$26,250
• D)$10,000

Recognize the conditions that preclude a lessor from classifying a lease as a sales-type or direct financing lease.

Understand the reporting requirements for Unearned Interest in leases and the rationale behind capital lease accounting.

Understand the components and calculations involved in determining pension expense under GAAP.

Differentiate between defined benefit and defined contribution pension plans including their characteristics and accounting treatment.

---

Definitions:

Differentiation Strategy

A business approach where a company seeks to be unique in its industry along some dimensions valued by customers.

Performance Management

Is the general set of activities carried out by the organization to change (improve) employee performance.

Cost Leadership Strategy

A cost leadership strategy is one that focuses on minimizing the costs as much as possible.

Defender Strategy

A business strategy focusing on defending existing market niches, maintaining stable growth, and protecting market share from competitors.