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Coastal Wave Exporters, a U.S. firm, has the equivalent of $100,000 of before-tax foreign income. The foreign country has a corporate income tax rate of
Coastal Wave Exporters, a U.S. firm, has the equivalent of $100,000 of before-tax foreign income. The foreign country has a corporate income tax rate of 25% and the U.S. has a corporate income tax rate of 35%. If the U.S. treated the taxes paid on income earned in the host country as a tax-credit, how much would Coastal Wave's total U.S.corporate tax on the foreign carnings be when it remits the income back to the U.S
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