LO.5 Canteen, Inc., a U.S. corporation, owns 100% of NewGrass, Ltd., a foreign corporation. NewGrass earns only

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LO.5 Canteen, Inc., a U.S. corporation, owns 100% of NewGrass, Ltd., a foreign corporation.

NewGrass earns only general limitation income. During the current year, New-

Grass paid Canteen a $10,000 dividend. The deemed-paid foreign tax credit associated with this dividend is $3,000. The foreign jurisdiction requires a withholding tax of 20%, so Canteen received only $8,000 in cash as a result of the dividend. What is Canteen’s total U.S. gross income reported as a result of the $8,000 cash dividend?

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