Orchid Inc.,a U.S.multinational with a 21% marginal tax rate,owns a foreign subsidiary operating in a country with a 15% income tax.This year,the subsidiary generated $400,000 taxable income.What is the total tax burden (domestic and foreign) on the earnings of the foreign subsidiary if it does not repatriate its after-tax earnings and has no subpart F income?
A) $24,000
B) $84,000
C) $400,000
D) $60,000
Correct Answer:
Verified
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