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I don't understand why I got this wrong. this is the everything that was given Chapeau Company, a U.S. corporation, operates through a branch in
I don't understand why I got this wrong. this is the everything that was given
Chapeau Company, a U.S. corporation, operates through a branch in Champagnia. The source rules used by Champagnia are identical to those used by the United States. For 2020 , Chapeau has $10,000 of gross income: $6,000 from U.S. sources and $4,000 from sources within Champagnia. The $6,000 of U.S. source income and $3,500 of the foreign source income are attributable to manufacturing activities in Champagnia (foreign branch income). The remaining $500 of foreign source income is passive category interest income. Chapeau had $2,500 of expenses other than taxes, all of which are allocated directly to manufacturing income ( $1,000 of which is apportioned to foreign sources). Chapeau paid $470 of income taxes to Champagnia on its manufacturing income. The interest income was subject to a 10 percent withholding tax of $50. Compute Chapeau's total allowable foreign tax credit in 2020. (Do not round any division. Round other intermediate computations to the nearest whole dollar amount.) Answer is complete but not entirely correctStep by Step Solution
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