Delta Systems Inc

Multiple Choice

Delta Systems Inc. is a Canada-based MNC that manufacturers satellite equipment. of $100,000 before foreign taxes. All after-tax earnings are to be paid to the parent as dividends. The foreign taxes include an income tax rate of35 percent and a dividend withholding tax of 10 percent. The firm's marginal tax rate in Canada is34 percent. What will be the firm's after-tax dividend income?

A) $71,000
B) $34,000
C) $41,500
D) $58,500