Question: Fleming Corporation, a U . S . multinational, has pretax U . S . source income and foreign source income as follows: U . S

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 incomeCountry A $ 500,000
Total $ 1,500,000
Fleming paid $50,000 income tax to Country A. Assume Flemings foreign source income does not qualify as foreign-derived intangible income. If Fleming takes the foreign tax credit, compute its worldwide tax burden as a percentage of its pretax income.

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