F3 Exam Dumps | Company AAB is located in country A whose currency is the AS It has a subsidiary, BBA, located m country

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Question 48/185

Company AAB is located in country A whose currency is the AS It has a subsidiary, BBA, located m country B that has the BS as its currency AAB has asked BBA to pay BS40 million surplus funds to AAB to assist with a planned new capital investment in country A The exchange rate today is AS1 = BS3
Tax regimes
* Company BBA pays withholding tax of 25% on all cash remitted to the parent company
* Company AAB pays tax of 10% on at cash received from its subsidiary
How much will company AAB have available for investment after receiving the surplus funds from BBA?

A. A$ 81 million

B. A$ 27 million

C. A$ 9 million

D. A$ 12 million

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Question 48/185

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