A Japanese branch of a U.S. corporation paid $4,200,000 in taxes to the government of Japan on income it generated there. The corporation is subject to a 35% tax rate in the U.S. How much tax will be owed to the U.S. government on the $10,000,000 of Japanese branch income?
A) $4,200,000
B) $3,500,000
C) $0
D) $7,000,000
Correct Answer:
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