Suppose that a U.S. company (that faces a 21% U.S. tax rate) has a foreign subsidiary that has pre-tax income (all cash) of $1,500. The subsidiary operates in a country with a 10% tax rate. (Note that the U.S. now taxes on the territorial basis - i.e., the foreign sub is eligible for the participation exemption.)
A) $330
B) $150
C) $210
D) $300