A FOREIGN SUBSIDIARY HAS $1,000,000 OF TAXABLE INCOME, A (FOREIGN...

165. - BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN
BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN
165. A foreign subsidiary has $1,000,000 of taxable income, a (foreign) corporate tax rate of 30%, and a foreign dividend withholding rate of 20%. The U.S. (domestic) parent has a corporate tax rate of 35%. What are the total taxes paid by the foreign subsidiary? Assume that the foreign subsidiary is 100% owned by the U.S. parent and that all after-tax income is paid to the U.S. parent. a. $50,000 b. $30,000. c. $85,000 d. $44,000