If the foreign income tax rate is higher than the MNC's home-country tax rate:
A) the MNC pays no additional home-country income taxes on the subsidiary's income.
B) the MNC will pay an additional income tax that is the differential between the tax rate of the foreign country and the tax rate of the MNC's home-country.
C) the MNC's domestic income tax will be eliminated.
D) the foreign subsidiary will pay no tax in the foreign country.
Correct Answer:
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