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Cream Co has two foreign branches who income is earned through active business operations, IE the income is not passive. High Tax Branch earned 6
Cream Co has two foreign branches who income is earned through active business operations, IE the income is not passive. High Tax Branch earned 6 million of taxable income and paid 1.8 million in foreign taxes on the income. Low Tax Branch earned 9 million of taxable income and paid 9. 100,000 of foreign taxes. How much foreign tax credit can cream code claim and how much additional U.S. tax must Cream co-pay on this income after factor in the foreign tax credit IED United States tax? Owed as 2,000,000, but a 1.5 million foreign tax credit can be claimed. Then the answer for the additional U.S. tax would be $500,000 A. A 2.7 million FTC, $0 additional U.S. tax B. 2.16 million FTC , $990,000 additional U.S. tax. C. 2.17 million FTC, $450,000 additional U.S. tax.==
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