Fleming Corporation, a U.S. multinational, has pretax U.S. source income and foreign source income as follows.
Corporate tax rate schedule.
U.S. source income $ 1,000,000
Foreign source income-Country A 500,000
Total $ 1,500,000
-Fleming paid $50,000 income tax to Country A. If Fleming takes the foreign tax credit, compute its worldwide tax burden as a percentage of its pretax income.
A) 21%
B) 34%
C) 33%
D) 17.33%
Correct Answer:
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