15. LO.3 ABC, Inc., a domestic corporation, reports $50,000,000 of taxable income, including $15,000,000 of foreign-source taxable

Question:

15. LO.3 ABC, Inc., a domestic corporation, reports $50,000,000 of taxable income, including $15,000,000 of foreign-source taxable income from services rendered, on which ABC paid $2,500,000 in foreign income taxes. The U.S. tax rate is 21%. What is ABC’s foreign tax credit?

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