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Relative to Local (Foreign) Competition, Foreign-Source Income Is Least Valuable

Question 41

Multiple Choice

Relative to local (foreign) competition, foreign-source income is least valuable to a U.S.-based firm when ______.


A) the income is from a low-tax country and the firm has excess foreign tax credits
B) the income is from a high-tax country and the firm has excess foreign tax credits
C) the income is from a low-tax country and the firm has no excess foreign tax credits
D) the income is from a high-tax country and the firm has no excess foreign tax credits
E) None of the above

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