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Mega,Inc., a U.S. multinational corporation, has a wholly-owned subsidiary in South Korea. In the current year, the subsidiary generated income of $10 million, all from
Mega,Inc., a U.S. multinational corporation, has a wholly-owned subsidiary in South Korea. In the current year, the subsidiary generated income of $10 million, all from operations in Asia. Mega received a $3 million dividend from the subsidiary during the year. By how much does the subsidiary's income and/or distribution impact Mega's current year U.S. taxable income? Ignore any Korean taxes that might have been paid by the subsidiary.
Group of answer choices
$0
$3,000,000
$10,000,000
None of the above.
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