Which of the Following Statements Regarding the Translation of Foreign

question 28

Multiple Choice

Which of the following statements regarding the translation of foreign income taxes is true?

• A) Translation of foreign taxes into U.S. dollars helps manage the U.S. balance of trade.
• B) Foreign taxes are translated into U.S. dollars only when such translation provides a tax benefit to the taxpayer.
• C) Foreign taxes typically are paid in a foreign currency and, thus, must be converted to U.S. dollars when used as a FTC on a U.S. return.
• D) Translation of foreign taxes into U.S. dollars encourages foreign corporations to set up operations in the United States.

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Definitions:

Self-Incrimination

The act of implicating oneself in a crime, which is protected against under the Fifth Amendment of the U.S. Constitution.

Grand Jury

A group of citizens convened to determine whether there is enough evidence to charge someone with a crime.

Self-Incrimination

The act of implicating oneself in a crime, often discussed in the context of the right against self-incrimination in legal proceedings.

Pervasive-Regulation Exception

An exception in law that applies when a business is heavily regulated by the government, therefore some usual legal protections may not apply to that business in the same way they do others.