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The 38- corporations that filed United States income tax ret

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The 38- corporations that filed United States income tax ret [#permalink] New post   11 Aug 2020, 11:00
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The 38 corporations that filed United States income tax returns showing a net income of more than $100 million accounted for 53 percent of the total taxable income from foreign sources reported on all tax returns. Sixty percent of the total taxable income from foreign sources came from the 200 returns reporting income from 10 or more countries.


If the statements above are true, which of the following must also be true?

(A) Most of the total taxable income earned bycorporations with net income above $100million was earned from foreign sources.
(B) Wealthy individuals with large personalincomes reported 47 percent of the totaltaxable income from foreign sources.
(C) Income from foreign sources amounted tobetween 53 and 60 percent of all reportedtaxable income.
(D) Some of the corporations with net incomeabove $100 million reported income fromto or more countries.
(E) Most of the tax returns showing incomefrom 10 or more cou~tries reported netincome of more than $100 million.

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Re: The 38- corporations that filed United States income tax ret [#permalink] New post   25 Mar 2021, 03:36
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One thing to note here is that this question belongs to the overlapping set.
Let's see how.

53% of the total taxable income from foreign sources = x= 38 corporations showing >$100m
60% of the total taxable income from foreign sources = y = 200 return files showing income from 10 or more countries.

Some are common in x and y.
D matches the above logic.
D is correct.
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Re: The 38- corporations that filed United States income tax ret [#permalink] New post   13 Apr 2021, 01:51
Didn't understand the reasoning behind the stem. Confusing 53%? 60%?
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Re: The 38- corporations that filed United States income tax ret [#permalink] New post   15 Apr 2021, 06:49
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sORRY i AM NOT ABLE TO EXPLAIN BETTER THAN ABOVE THIS QUESTION

Basically it is an overlapping set in words
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Re: The 38- corporations that filed United States income tax ret [#permalink] New post   25 Apr 2021, 19:18
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One hell of a question. Got me a headache :D :D

I will try to explain. This is an inference question which means the answer choice must be 100% true. No room for partial scope. We need to use POE in this case.

(A) Most of the total taxable income earned by corporations with net income above $100million was earned from foreign sources. - May be. It was shown as a net income but we do not what is the actual income from foreign sources.
(B) Wealthy individuals with large personal incomes reported 47 percent of the total taxable income from foreign sources. - May be. But why wealthy? Other class people could also contribute.
(C) Income from foreign sources amounted to between 53 and 60 percent of all reported taxable income. - We know min but not maximum.
(D) Some of the corporations with net income above $100 million reported income from 10 or more countries. Since, 53% accounts for total tax and 60% accounts for 10 or more countries, then some of the corporations above $100 million income would report from 10 or more countries.
(E) Most of the tax returns showing income from 10 or more countries reported net income of more than $100 million. Distorted answer choice.

For Example, If there are 10 people showing their income as Rs 1 or more, then total income would be Rs 10 or more. Out of which 53% (or 5.3 people) accounts for Rs 1 or more.
Now, 60% (6 people) accounts for that income from 10 or more countries. Then, Definitely, Some people would show their income as Rs 1 or more.

Hope this Helps. :) :)
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Re: The 38- corporations that filed United States income tax ret [#permalink] New post   08 May 2022, 02:49
Hello from the GRE Prep Club VerbalBot!

Thanks to another GRE Prep Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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