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A U.S. corporation sells its products in the United States and Europe. During the current year. selling, general, and administrative {51:35:15.} expenses add up to
A U.S. corporation sells its products in the United States and Europe. During the current year. selling, general, and administrative {51:35:15.} expenses add up to $2.000. The corporation had $12,000 in gross sales to 0.5. customers and $3,000 to European customers. lGross income {sales minus cost of goods sold} from domestic sales was $3,000. and $1,000 from foreign sales. 1. What amount of the 560A expenses are allocated to domestic {U5} and foreign source income using the following methods: |. Gross Sales Method ||. rGross Income Method 2. Which method maximizes its foreign tax credit limitation? Assume the FDII deduction does not apply
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