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Robert is a US citizen and employed by a US company. Durning 2020, he is transferred to the United Kingdom. During the year, he earns
Robert is a US citizen and employed by a US company. Durning 2020, he is transferred to the United Kingdom. During the year, he earns $35,000 in the US before heading to the UK, where he earns $140,000. In the US he is taxed at 25% and in the UK he is taxed at 40%. What will be Robert's US tax liability after the foreign tax credit?
$43,750
$8,750
None of these amounts.
$56,000
$35,000
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