Question
Babel Corp.'s tax footnote in the statements on Dec 31, 2019 included the following. Income from continuing operations before taxes consisted of the following: ---------------------------------------------------------------------
Babel Corp.'s tax footnote in the statements on Dec 31, 2019 included the following. Income from continuing operations before taxes consisted of the following: --------------------------------------------------------------------- Year: 2019 | 2018 | 2017 United States: 2,400 | 1,184 | 1,215 International: 1,891 | 1,410 | 1,652 Total income before taxes: 4,448 | 2,594 | 2,867 --------------------------------------------------------------------- The tax effects of the major items recorded as deferred tax assets and liabilities are: Year, December 31,: 2019 | 2018 --------------------------------------------------------------------- Deferred Tax Assets: Prepaid/deferred items: 361 | 411 Inventories: 471 | 322 Employee benefits: 544 | 391 Litigation reserves: 346 | 310 Valuation allowance: 27 | 30 Deferred Tax Assets: 1,749 | 1,464 --------------------------------------------------------------------- Deferred Tax Liabilities: Property, plant and equipment: 514 | 433 Unremitted earnings: 335 | 335 Deferred Tax Liabilities: 849 | 768 --------------------------------------------------------------------- Suppose in 2019 Babel Corp. recognized $280 as litigation expense and paid $160 for litigation costs. What is the effective tax rate for Babel Corp. in 2019?
A. 0.2400
B. 0.2600
C. 0.2800
D. 0.3000
E. 0.3200
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