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Night, Inc., a domestic corporation, earned $300,000 from foreign manufacturing activities on which it paid $90,000 of foreign income taxes. Night's foreign sales income is
Night, Inc., a domestic corporation, earned $300,000 from foreign manufacturing activities on which it paid $90,000 of foreign income taxes. Night's foreign sales income is taxed at a 50% foreign tax rate. Assume a 34% U.S. tax rate. Night can earn up to $ in foreign sales income without generating any excess foreign tax credits.
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