Fleming Corporation, a U.S. multinational, has pretax U.S. source income and foreign source income as follows. Fleming paid $200,000 income tax to CountryA. If Fleming takes the foreign tax credit, compute its worldwide tax burden as a percentage of its pretax income.

Question

Fleming Corporation, a U.S. multinational, has pretax U.S. source income and foreign source income as follows.  Fleming paid $200,000 income tax to CountryA. If Fleming takes the foreign tax credit, compute its worldwide tax burden as a percentage of its pretax income.

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The Answer of Fleming Corporation, a U.S. multinational, has pretax U.S. source income and foreign source income as follows.  Fleming paid $200,000 income tax to CountryA. If Fleming takes the foreign tax credit, compute its worldwide tax burden as a percentage of its pretax income.