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Which of the following circumstances would favor the foreign earned income exclusion over the foreign tax credit? A) Income is subject to a high tax

Which of the following circumstances would favor the foreign earned income exclusion over the foreign tax credit?

A) Income is subject to a high tax rate in the foreign country.

B) Income is too high to qualify for either the full exclusion or the full credit.

C) 30% of foreign income is considered earned; the other 70% is investment income.

D) Income is subject to a low tax rate in the foreign country.

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