Question
Grand Corporation has $100,000 of U.S. source taxable income and $200,000 of foreign source taxable income from operations in Poland. Poland levied $80,000 in taxes
Grand Corporation has $100,000 of U.S. source taxable income and $200,000 of foreign source taxable income from operations in Poland. Poland levied $80,000 in taxes on the foreign source income. U.S. taxes before credits are $105,000. The overall foreign tax credit limitation is
|
| a. | $35,000 |
|
| b. | $53,334 |
|
| c. | $70,000 |
|
| d. | $80,000 |
|
| e. | $105,000 |
| ANSWER: | c |
Please explain how to get $70000. Thank you.
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Auditing Concepts And Methods
Authors: McGraw-Hill
1st Edition
0074701266, 978-0074701263
