Pear Inc. is a global organization that manufactures and sells its products throughout the world. As a result, Pear Inc. is subject to many different jurisdictional taxes. Using Pear Inc. as an example, answer the following questions:

• Pear Inc., is incorporated in the state of Delaware but headquartered in Los Angeles, CA. Fred believes Pear Inc. only pays taxes in its state of incorporation, Delaware. Explain whether Freds thinking is correct or incorrect. Provide a paragraph (using your own words) explaining the 3 ways states determine corporate taxation and how Pear Inc. is most likely taxed under these principles.
• Pear Inc. buys component parts for its products in several countries including Germany, Switzerland, China, and Japan. These parts are then assembled in manufacturing plants located in China and Ireland and sold in over 100 countries. Fred assumes that all the business activities of Pear Inc. occurred outside the US are not subject to any corporate tax in the US until the cash from these activities is repatriated home. Is Freds assumption correct? Explain how the US views these activities and why Freds assumption is or is not an accurate assumption.