Use the Information for the Question(s)below

question 33

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) :
-The amount of the taxes paid in dollars for the Irish operations is closest to:

• A)$20.5 million.
• B)$5.1 million.
• C)$29.5 million.
• D)$50.0 million.

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Definitions:

Solution

A homogeneous mixture composed of two or more substances, where the solute is dissolved in the solvent.

Adrenal Cortex

The outer layer of the adrenal glands that produces steroid hormones such as cortisol and aldosterone, which regulate metabolism and blood pressure.

Hormones

Chemical messengers produced by the endocrine glands in the body, transported in the bloodstream to target organs to regulate physiology and behavior.

Endocrine System

The body system that helps regulate metabolic activities; consists of ductless glands and tissues that secrete hormones.