The 38 corporations that filed United States income tax : GMAT Critical Reasoning (CR)
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# The 38 corporations that filed United States income tax

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Manager
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The 38 corporations that filed United States income tax [#permalink]

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14 Jul 2004, 07:07
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The 38 corporations that filed United States income tax returns showing a net income of more than $100 million accounted for 53 percent of the total taxable income from foreign sources reported on all tax returns. Sixty percent of the total taxable income from foreign sources came from the 200 returns reporting income from 10 or more countries. If the statements above are true, which of the following must also be true? A. Most of the total taxable income earned by corporations with net income above$ 100 million was earned from foreign sources.

B. Wealthy individuals with large personal incomes reported 47 percent of the total taxable income from foreign sources.

C. Income from foreign sources amounted to between 53 and 60 percent of all reported taxable income.

D. Some of the corporations with net income above $100 million reported income from 10 or more countries. E. Most of the tax returns showing income from 10 or more countries reported net income of more than$ 100 million.
[Reveal] Spoiler: OA

Last edited by aditya8062 on 08 Dec 2014, 04:31, edited 1 time in total.
OA not provided
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Re: The 38 corporations that filed United States income tax [#permalink]

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14 Jul 2004, 10:22
C (4min 35s)

used POE: (A), (B) and (D) are out after a glance through the answers as
(B) speaks abt. wealthy individuals...no where mentioned
(A) changes the problem statement
(D) might not be true

coming to (E)--> even this cannot be concluded from the given statements as it is very much possible that the 38 companies which have more than 100 million revenue get their income from just one foreign country.

Therefore concluded with C
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Re: The 38 corporations that filed United States income tax [#permalink]

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14 Jul 2004, 11:17
I'll go with D and I'll provide explanation if correct.
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Re: The 38 corporations that filed United States income tax [#permalink]

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14 Jul 2004, 12:08
OlegC wrote:
The 38 corporations that filed United States income tax returns showing a net income of more than $100 million accounted for 53 percent of the total taxable income from foreign sources reported on all tax returns. Sixty percent of the total taxable income from foreign sources came from the 200 returns reporting income from 10 or more countries. If the statements above are true, which of the following must also be true? A. Most of the total taxable income earned by corporations with net income above$ 100 million was earned from foreign sources.

B. Wealthy individuals with large personal incomes reported 47 percent of the total taxable income from foreign sources.

C. Income from foreign sources amounted to between 53 and 60 percent of all reported taxable income.

D. Some of the corporations with net income above $100 million reported income from 10 or more countries. E. Most of the tax returns showing income from 10 or more countries reported net income of more than$ 100 million.

This diagram helped to clarify things. The answer is D.

A - wrong: "All of the income earned by corporations with net income of more than \$100 mln, came from foreign sources!"
The whole circle represents corporations with income ONLY from foreign sources

B - wrong: out of scope. We're talking about corporations, not wealthy individuals!

C - wrong: the stem addresses 'all taxable income from FOREIGN sources', not simply 'all taxable income'

E - wrong: the catch is "MOST". We could construct an example where only a small share [not most] of the 200 returns was made by the 38 corporations.
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Re: The 38 corporations that filed United States income tax [#permalink]

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14 Jul 2004, 12:19
Great job SG
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Re: The 38 corporations that filed United States income tax [#permalink]

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14 Jul 2004, 12:30
good explanation Smashin'

i was planning to draw a figure for this, you saved me from a ordeal
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Re: The 38 corporations that filed United States income tax [#permalink]

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14 Jul 2004, 23:54
Very good explanations

I spent 2:30 on this question
Re: The 38 corporations that filed United States income tax   [#permalink] 14 Jul 2004, 23:54
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