Which of the Following Statements Is True About U

Multiple Choice

Which of the following statements is true about U.S. taxation of foreign subsidiaries?

A) The U.S. income taxes income generated by subsidiaries incorporated in foreign countries.
B) U.S. multinationals do not pay tax on their worldwide income if incorporated in the U.S.
C) Transfer pricing will eliminate taxes by the U.S. government on multinational corporations.
D) U.S. tax on foreign operations does not have to be paid until the income is brought back to the U.S.