Question 13 of 33 2 Points Because capital losses are generally deductible only against capital gains, one US tax benefit derived from the foreign-sourced capital gain is to soak up the US sourced capital loss. Second benefit is to increase the foreign tax credits allowed. To prevent this double tax benefit, A. a foreign-sourced gain is excluded from the numerator of the foreign tax credit limitation to the extent it offsets a US-source capital loss. B. a foreign-sourced loss is excluded from the numerator of the foreign tax credit limitation to the extent it offsets a US-sourced capital gain. C. all gains and losses are excluded for the foreign tax credit limitation calculation. D. 50% of the foreign-sourced gain is reallocated to US-sourced income. Reset Selection Question 15 of 33 2 Points Harry is a citizen and resident of Saudi Arabia. During the current year, Harry never visits the United States, nor does he hold a green card. However, he received a dividend from Micro Corporation, a corporation organized in the United States. The United States does NOT have an income tax treaty with Saudi Arabia. What is the Source of Income and how does the U.S. tax the income. OA. US Sourced and NOT taxed B. US Sourced and tax at graduated tax rates OC. US Sourced and tax at withholding tax rates D. Foreign Sourced and NOT taxed E. Foreign Sourced and tax at graduated tax rates F. Foreign Sourced and tax at withholding tax rates Reset Selection Question 16 of 33 2 Points Ainslie, receives and annual pension of $30,000 from a domestic trust, $5,000 of which is attributable to earnings (interest) on the plan assets and the remaining $25,000 to employer contributions. Ainslie's former employer contributed a total of $100,000 to the pension plan on Ainslie's behalf, $30,000 of which was contributed while Ainslie was on foreign assignments. What is the foreign-sourced portion of Ainslie's annual pension? OA. $0. B. $3,000. C. $7,500. D. $25,000. Reset Selection Question 18 of 33 2 Points Pis a domestic corporation. P owns 100% of F1, F1 owns 100% of F2, F2 owns 100% of F3, and F3 owns 50% of F4. All the other shareholders of F4 are unrelated foreign persons. Prior to 2018, which corporations could P claim a deemed paid foreign tax credit, assuming the foreign corporation's earnings were distributed up to P. A. None B. Only F1 C. F1 and F2 D. F1, F2 and F3 E. F1, F2, F3 and F4 Reset Selection Question 21 of 33 2 Points PiperCo, a domestic corporation, owns 100% of ScoutCo, a country F corporation. During 2016 (its first year of operations), ScoutCo earns $100,000 of income, pays $30,000 of country F income taxes (on the $100,000 of income), and distributes a dividend of $35,000 to PiperCo. If PiperCo elects to take a foreign tax credit for the deemed ScoutCo taxes paid, PiperCo will report income of: A. $100,000. B. $70,000. OC. $50,000. D. $35,000. Reset Selection