The Subsidiary of a U

question 5

Multiple Choice

The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $200,000 in taxes to Country Y. The subsidiary paid a dividend to the U.S. parent of $150,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%?

• A) $35,625
• B) $0
• C) $52,500
• D) $32,500

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Time Lag

The delay between the initiation of an action or policy and the observed effects or outcomes of that action.

Patentable

Qualifies for intellectual property protection because it is new, useful, and non-obvious.

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The anticipated return on an investment, calculated based on historical data, market trends, or other analytical methods.