LO.4 Shannon, the CFO of TechCo, Inc., has used ASC 740-30(APB 23) to avoid reporting any U.S.
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LO.4 Shannon, the CFO of TechCo, Inc., has used ASC 740-30(APB 23) to avoid reporting any U.S. deferred tax expense on $30 million of the earnings of TechCo’s foreign subsidiaries. All of these subsidiaries operate in countries with lower tax rates than the United States. Shannon wants to bring home $10 million in profits from these foreign subsidiaries in the form of dividends. How will this profit repatriation affect TechCo’s book effective tax rate?
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Related Book For
South Western Federal Taxation 2011 Taxation Of Business Entities
ISBN: 9780538498616
14th Edition
Authors: James E. Smith, William A. Raabe, David M. Maloney
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