16-41 Foreign Tax Credit Limitation. Tucson, a U.S. corporation organized in Year 1, reports the following items for a three-year period.

Year1 Year 2 Year3

Foreign tax accrual $ 100,000 $ 120,000 $ 180,000

Foreign source taxable income 400,000 300,000 500,000

Worldwide taxable income 1,000,000 1,000,000 1,000,000

The foreign source and worldwide taxable income items are determined under U.S. law.

b. How are Tucsons excess foreign tax credits (if any) treated? Do any carryovers remain after Year 3?