Fleming Corporation, a U.S. multinational, has pretax U.S. source income and foreign source income as follows:    U.S. source income$1,000,000 Foreign source income-Country A 500,000 Total$1,500,000  Fleming paid $50,000 income tax to Country A. If Fleming takes the foreign tax credit, compute its worldwide tax burden as a percentage of its pretax income.

A. 33%
B. 34%
C. 21%
D. 17.33%


Answer: C

Business

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