In January of 2020, USCO, a domestic corporation, formed and became the 100% shareholder of FORCO, a Country F corporation. In its first year of operations, FORCO earned $100,000 of foreign source income and paid $30,000 in Country F income tax. In 2021, FORCO breaks even and in March of 2022, FORCO pays USCO a dividend of $70,000. With respect to the $70,000 dividend, how much USCO will receive a deduction ?

Answer rating: 100% (QA)

Answer USCO being the 100 shareholder of FORCO may be eligible for a foreign tax credit FTC for the ... View the full answer