Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Harry Mining, a U.S. -based MNC has a foreign subsidiary that earns $1,050,000 before local taxes, with all the after tax funds to be available

image text in transcribed
Harry Mining, a U.S. -based MNC has a foreign subsidiary that earns $1,050,000 before local taxes, with all the after tax funds to be available to the parent in the form of dividends. The foreign income tax rate is 30 percent, the foreign dividend withholding tax rate is 5 percent, and the firm's U.S. tax rate is 35 percent. What are the funds available to the parent MNC if foreign taxes can be applied as a credit against the MNC's U.S. tax liability? O A. $624,750 OB. $682,500 O C. $425,250 OD. $735,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Corporate Finance A Focused Approach

Authors: Suk Hi Kim, Kenneth A Kim

2nd Edition

9814618004, 9789814618007

More Books

Students also viewed these Finance questions

Question

List the advantages and disadvantages of the pay programs. page 536

Answered: 1 week ago