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Paul invests in a company based in France and receives an ordinary dividend in the amount $10,000 during 2020. As a result of this dividend
Paul invests in a company based in France and receives an ordinary dividend in the amount $10,000 during 2020. As a result of this dividend he is obligated to pay French taxes of $2,000. However, he is also entitled to a refund of $100 when he files his French Tax Return in 2020. Assume his marginal U.S. tax rate is 15% and he has no other income. What is the allowed foreign tax credit for 2020?
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