Chris and Amari are married, US citizens who file a joint return. They lived all year in a country with a tax treaty with the United States that is identical to the US Model Treaty. During $2024,$ the couple earned the following income:

Salary for Chris, foreign$-$sourced $$80,000$

Unearned income for Amari, foreign sourced $$60,000$

Foreign taxes withheld on Chris$$s salary $$25,000$

Dividend income to Chris, foreign sourced $$20,000$

Interest income to Amari, US sourced $$10,000$

In addition, Amari had $$10,000$ of withholding on the foreign sourced unearned income in #$2,$ which was withheld properly. The US tax rate on all items of income is $20\%.$ Chris and Amari have itemized deductions of $$32,000$ before the inclusion of any of the items listed above.

Chris and Amari have come to you to minimize their US income tax liability. Which of the following statements is true?

Chris and Amari's joint income tax liability will be the least if they only take the Foreign Earned Income Exclusion.

Chris and Amari's joint income tax liability will be the least if they take both the Foreign Earned Income Exclusion and the Foreign Tax Credit.

Chris and Amari cannot take the Foreign Earned Income Exclusion or the Foreign Tax Credit because they do not qualify.

Chris and Amari should take only the foreign tax credit to minimize their tax liability.