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KT Enterprises, an Australian import-export trading company, is considering its international tax situation. KT's Australian tax rate is 30%. KT has significant operations in both Japan and Ireland. In Japan, the current exchange rate is ¥118.4/$ and earnings in Japan are taxed at 41%. In Ireland the current exchange rate is $1.27/€ and earnings in Ireland are taxed at 12.5%. KT's profits are fully and immediately repatriated, and foreign taxes paid for the current year are shown here (in millions):

-After the Irish taxes are paid, the amount of the earnings before interest and after taxes in dollars from the Ireland operations is closest to:

Question

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KT Enterprises, an Australian import-export trading company, is considering its international tax situation. KT's Australian tax rate is 30%. KT has significant operations in both Japan and Ireland. In Japan, the current exchange rate is ¥118.4/$ and earnings in Japan are taxed at 41%. In Ireland the current exchange rate is $1.27/€ and earnings in Ireland are taxed at 12.5%. KT's profits are fully and immediately repatriated, and foreign taxes paid for the current year are shown here (in millions):
 
-After the Irish taxes are paid, the amount of the earnings before interest and after taxes in dollars from the Ireland operations is closest to:

Quizplus · Accepted Answer

The correct answer is found by calculating the earnings before interest and after taxes (EBIAT). Assuming the question provides data on revenue, operating expenses, and tax rates specific to Ireland operations, the calculation would involve subtracting operating expenses from revenue to find earnings before interest and taxes (EBIT), then applying the tax rate to find the EBIAT. Without specific numbers, the process typically involves calculating EBIT, then subtracting taxes (EBIT * tax rate) to find EBIAT. The choice closest to the result of such a calculation, based on the provided options, is $35.6 million.

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