Foreign Tax Credit Limitation. During the current year, Jackson, a U.S. corporation and accrual method taxpayer, engages in both U.S. and foreign business activities. All its overseas activities are conducted by a branch in Country S. The results of Jackson's current year operations are as follows:

U.S. source taxable income $2,000,000

Foreign source taxable income $1,500,000

Accrued Country S income taxes $600,000

a. What is the amount of Jackson's foreign tax credit (assuming the corporate tax rate is 34% and income from all foreign activities fall into a single basket?)

b. Are any foreign tax credit carrybacks or carryovers available? If so, in what years can they be used?

Corporate taxes

Question C:16-38 from Prentice Hall's Federal taxation 2016 ISBN 978-0-13-410585-7 or ISBN 0-13-41585.0