Nico Mining, a U

question 96

Multiple Choice

Nico Mining, a U.S.-based MNC has a foreign subsidiary that earns $1,050,000 before local taxes, with all the after tax funds to be available to the parent in the form of dividends. The foreign income tax rate is 30 percent, the foreign dividend withholding tax rate is 15 percent, and the firm's U.S. tax rate is 35 percent. What are the funds available to the parent MNC if no tax credits are allowed?

• A) $624,750
• B) $425,250
• C) $257,250
• D) $735,000

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Definitions:

Solicitation

In terms of prostitution, a word, gesture, or action that implies an offer of sex for sale.

Pandering

involves procuring or providing a person for the purpose of prostitution or sexual exploitation.

Gigolos

Typically refers to men who are paid to provide companionship or sexual services to clients, often in the context of heterosexual interactions.

Sexual Services

Activities provided for a fee that involve sexual gratification or erotic satisfaction of a client.