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Answer: D
NEW QUESTION: 2
Entity T operates within several countries, but its country of residence is Country F. In 20X5, Entity T made $8.4 million in Country M. Country M has a flat rate corporation tax of 5.9%.
Country F and Country M operate a double taxation treaty which uses a foreign tax credit system. In Country F, there is a tax of 10% tax on all foreign income.
Taking into account the credit, what is the total tax liability that Entity T owes on its Country M income, in Country F?
A. $495,600
B. $840,000
C. $450,000
D. $344,400
Answer: D
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Explanation:
Explanation
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