Falcon Networks
Falcon Networks Is a Leading Semiconductor Company with Operations

question 41

Multiple Choice

Falcon Networks
Falcon Networks is a leading semiconductor company with operations in 17 different countries.Information about the company's taxes appears below:
$\begin{array}{l}\begin{array}{lll} \text { Falcon Networks}\\ \text { Components of Income Tax Expense}\\ \text { (in millions) }\\\\ \text { Current - Federal}\\ \text { - Foreign}\\ \text { - State and Local}\\ \text { Total Current}\\ \text { Deferred - Federal}\\ \text { - Foreign}\\ \text { Total Deferred}\\ \text { Total Income Tax Expense}\\ \text { Note: Falcon Networks has no current liability at year-end with }\\ \text { respect to total current taxes.}\\ \text { Components of Income before Taxes}\\ \text { United States}\\ \text { Foreign}\\ \text { Total}\\\end{array}\begin{array}{lll}\\\\\\\mathbf{2 0 1 2} & \mathbf{2 0 11} \\\$ 55.65 & \$ 47.52 \\83.85 & 78.95 \\\underline{14.69} & \underline{12.5} \\\$ 154.19 & \$ 138.97 \\\$ 30.28 & \$ 42.90 \\\underline{23.89} &\underline{14.58}\\\$ 54.17& \$ 57.48 \\\underline{\$ 208.36}& \underline{\$ 196.45} \\\\\\\mathbf{2 0 1 2} & \mathbf{2 0 1 1} \\\$ 256.35 & \$ 253.68 \\\underline{236.85} & \underline{198.85}\\\underline{\$ 493.20}&\underline{\$ 452.53}\end{array}\end{array}$
-Using the information provided by Falcon Networks determine the combined effective tax rate for 2012.

• A) 33.52%
• B) 35.00%
• C) 42.25%
• D) 45.49%

---

Definitions:

Sudden Infant Death Syndrome

A sudden, unexplained death of an apparently healthy infant under one year old, often occurring during sleep, commonly referred to as crib death.

Acetaminophen Poisoning

A potentially dangerous condition resulting from excessive ingestion of acetaminophen, leading to liver damage or failure.

N-Acetylcysteine

A medication and dietary supplement used as an antioxidant to reduce mucus production and treat acetaminophen (paracetamol) overdose.

Antidote

A substance given to counteract or neutralize the effects of a poison.