Use the Information to Answer the Following Question(s)

question 28

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. has a bilateral trade agreement with the host country that calls for the total tax paid to be equal to the maximum amount that could be paid in the highest taxing country, what is the total amount of income taxes Rogue River Exporters will pay to the host country, and how much will they pay in U.S income taxes on the foreign earned income?

• A)$25,000; $10,000
• B)$25,000; $26,250
• C)$35,000; $0
• D)none of the above

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Definitions:

Sender

A person or group trying to communicate with someone else.

Receiver

The individual or group of individuals to whom a message is directed.

Decodes

The process of interpreting or giving meaning to a received message or piece of information.

Perceived Meaning

The personal significance or value that an individual attaches to a particular event, object, or aspect of their life.