QUESTION 1

1. FOR QUESTIONS 1 THROUGH 3: USCo, a U.S. C corporation, owns 100% of FORco, a foreign disregarded entity taxed as a branch. In 2018, FORco earns $10 million of foreign source income on which it pays country F income tax at a 15% rate.

   What are the creditable foreign taxes of USCo?

   	a.	$0
   	b.	$1.89 million
   	c.	$1.5 million
   	d.	$2.1 million

QUESTION 2

1. What is USCo's foreign tax credit limitation?

   	a.	$0
   	b.	$1.5 million
   	c.	$3.5 million
   	d.	$2.1 million

QUESTION 3

1. What is USCo's foreign tax credit?

   	a.	$0
   	b.	$3.5 million
   	c.	$1.5 million
   	d.	$2.1 million