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In Order to Avoid Double Taxation on the Income of Foreign

Question 44

Multiple Choice

In order to avoid double taxation on the income of foreign subsidiary companies,U.S.tax law:


A) does not tax income repatriated to the U.S. parent company.
B) allows the U.S. parent company to take a 100 percent tax credit for foreign income taxes paid.
C) provides a deduction for foreign income taxes paid.
D) none of these. U.S. companies are usually subject to double taxation when they have foreign subsidiaries.

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