The tax that will be owed to the U.S. government on the $10,000,000 of Japanese branch income is B. $3,500,000
How to calculate the valueTo calculate the tax owed to the U.S. government on the Japanese branch income, we need to determine the taxable income and apply the appropriate tax rate. The taxable income is the income generated by the Japanese branch, which is $10,000,000.
The tax rate in the U.S. for this corporation is 35%. Therefore, the tax owed to the U.S. government can be calculated as follows:
Tax owed to the U.S. government = Taxable income * U.S. tax rate
= $10,000,000 * 35%
= $3,500,000
Therefore, the correct answer is B) $3,500,000.
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