A USCorporation May Be Able to Alleviate the Problem of Excess

question 91

Multiple Choice

A U.S.corporation may be able to alleviate the problem of excess foreign taxes by:

• A)Repatriating more foreign income to the United States in the year there is an excess limitation.
• B)Deducting the excess foreign taxes that do not qualify for the credit.
• C)Generating "same basket" foreign-source income that is subject to a tax rate lower than the U.S.tax rate.
• D)Generating "same basket" foreign-source income that is subject to a tax rate higher than the U.S.tax rate.

---

Definitions:

Solution

Fluid (the solvent) that contains a dissolved solid (the solute).

Tonicity

The ability of a surrounding solution to cause a cell to gain or lose water, depending on the concentration of solutes.

Turgor Pressure

The pressure of water pushing the plasma membrane against the cell wall of a plant cell, contributing to the cell’s rigidity.

Plasmolysis

The process in which plant cells lose water in a hypertonic solution, resulting in the shrinkage of the cell membrane away from the cell wall.