Placard, a Multinational Corporation Based in the U

question 163

Essay

Placard, a multinational corporation based in the U.S., has used ASC 740-30 (APB 23) to avoid reporting any U.S. deferred tax expense on $50 million of the earnings of its foreign subsidiaries. All of these subsidiaries operate in countries with lower tax rates than those of the U.S. When the profits eventually are repatriated, how is Placard's effective tax rate affected on its GAAP financial statements?

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Definitions:

Personal Space

The physical and psychological area an individual considers their own, preferring it to be free from intrusion by others.

Third Places

Public places that serve as informal gathering spots, distinct from one's home (first place) and work (second place), important for community building.

Public Places

Areas that are open and accessible to all members of a community, including parks, streets, and public buildings.

Informal

Lacking official procedures or rules; casual or unofficial in nature.