Question
A French branch of a U.S. corporation paid $8,000,000 in income taxes to the government of France on $20 million of pre-tax income generated in
A French branch of a U.S. corporation paid $8,000,000 in income taxes to the government of France on $20 million of pre-tax income generated in France.The corporation is subject to a 21% tax rate in the U.S.
How much foreign tax credit can be taken on the corporation's U.S. tax return?
A. $0
B. $8,000,000
C. $4,200,000
D. $8,400,000
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Accounting Chapters 1-13
Authors: Carl Warren
27th Edition
1337272108, 978-1337272100
