Carlotta Has $50,000 Foreign-Source Income and $150,000 Total Worldwide Income

question 73

Multiple Choice

Carlotta has $50,000 foreign-source income and $150,000 total worldwide income.Her U.S.tax on her worldwide income is $30,175,and she paid foreign taxes of $16,000.What is the Carlotta's foreign tax credit?

• A)$5,942
• B)$10,058
• C)$16,000
• D)$5,333

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Definitions:

Equilibrium Price

The cost at which the amount of a product or service sought by consumers matches the amount available from suppliers.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services provided matches the amount that is demanded.

Substitutes

Goods or services that can replace each other in usage, such that an increase in the price of one leads to an increase in demand for the other.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price in a market.