The Subsidiary of a U

question 27

Multiple Choice

The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $400,000 (40%) in taxes to Country Y. The subsidiary paid a dividend to the U.S. parent of $54,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%?

• A) $18,900
• B) $350,000
• C) $140,000
• D) $0

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Definitions:

Cognition

All the mental activities associated with thinking, knowing, remembering, and communicating.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of conscious and unconscious experience.

Broca's Area

An area of the brain located in the frontal lobe that is involved in language processing, speech production, and comprehension.

Angular Gyrus

An area within the parietal lobe of the brain that plays a role in understanding language, numerical data, and spatial awareness.