61. Jim has foreign income. He earns $26,000 from Country A which taxes the income at a 20 percent rate. He also has income from Country B of $18,000. Country B taxes the $18,000 at a 10 percent rate. His US taxable income is $90,000, which includes the foreign income. His US income tax on all sources of income before credits is $19,000. What is his foreign tax credit? a. $6,500 b. $7,000 C. $9,289 d. $19,000 e. Jim does not qualify for a foreign tax credit. ANSWER: b Please explain