Suppose That a Subsidiary Operates in a Foreign Country with a Corporate

question 13

Multiple Choice

Suppose that a subsidiary operates in a foreign country with a corporate tax rate of 42% and a withholding tax on dividends of 5%.If the U.S.parent has surplus foreign tax credits,what is the marginal rate of tax on remitted profits from the subsidiary?

• A)13%
• B)34%
• C)8%
• D)5%

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Definitions:

B.F. Skinner

An American psychologist and behaviorist known for his work in developing the theory of behaviorism and for his invention of the operant conditioning chamber.

Grammatical Sentences

Sequences of words constructed according to the rules of grammar for a particular language, effectively conveying meaning.

Language Acquisition Device

Hypothetical innate capability of human beings proposed by Noam Chomsky that allows for the learning of languages, especially during childhood.

Behaviourist Theory

A psychological approach that emphasizes the study of observable behaviors, especially as they pertain to the process of learning, without reference to mental states.