Ashley, a U

question 77

Multiple Choice

Ashley, a U.S. citizen, works in England for part of the year. She earns $40,000 in England, paying $10,000 in income taxes to the British government. Her U.S. income is $60,000 and she pays $12,000 in U.S. taxes. Her U.S. taxes on her worldwide income are $20,000. What is Ashley's excess foreign tax credit? Assume she does not qualify for the foreign- earned income exclusion.

• A) $2,000
• B) $4,000
• C) $0
• D) none of the above

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Definitions:

Factor Ratings

A method used to evaluate various factors in decision-making processes by assigning them scores based on their importance.

Fixed Costs

Costs that do not change with the level of output or production, remaining constant over a specific period.

Variable Costs

Costs that change in proportion to the level of goods or services produced.

Sales Volume

The quantity of products or services sold by a company during a certain period of time.