BuildCo, Inc., a domestic C corporation, has used ASC 740-30 (APB 23) to avoid reporting any U.S.

Question:

BuildCo, Inc., a domestic C corporation, has used ASC 740-30 (APB 23) to avoid reporting any U.S. deferred tax expense on $100 million of the earnings of BuildCo's foreign subsidiaries. All of these subsidiaries operate in countries with higher tax rates than the ones that apply under U.S. law. Jaime, BuildCo's CFO, wants to bring back to the United States $30 million in profits from these foreign subsidiaries in the form of dividends. How will this profit repatriation affect Build-Co's book effective tax rate?