Which of the Following Statements Is FALSE

question 42

Multiple Choice

Which of the following statements is FALSE?

• A)Other benefits from deferral arise because the firm effectively gains a real option to repatriate income at times when repatriation might be cheaper.
• B)By pooling foreign income,the firm effectively pays the combined tax rate on all foreign income.
• C)In years in which the U.S.tax rate exceeds the combined tax rate on all foreign income,the repatriation of additional income does not incur an additional U.S.tax liability,so the earnings can be repatriated tax free.
• D)Deferring repatriation of earnings lowers the overall tax burden in much the same way as deferring capital gains lowers the tax burden imposed by the capital gains tax.

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Definitions:

Romantic Partners

Individuals involved in a relationship that is characterized by love, affection, and/or sexual attraction.

Human Patterns

The recurring and predictable behaviors, habits, or trends exhibited by individuals or groups in society.

Cognitive Analysis

The examination of mental processes including perception, memory, thought, and problem-solving.

Dispositional Analysis

The assessment of an individual's inherent traits, characteristics, and tendencies to understand behavior.