Ashley, a U

question 56

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 taxes on her worldwide income are $20,000. What is Ashley's foreign tax credit? Assume she does not qualify for the foreign- earned income exclusion.

• A) $10,000
• B) $8,000
• C) $12,000
• D) none of the above

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Definitions:

Hypnotic State

A trance-like state of focused attention and increased suggestibility, often used for therapeutic purposes.

Susceptibility

The likelihood or predisposition to be affected by a particular condition or disease based on genetic or environmental factors.

Reactions

Responses by an individual or system to external or internal stimuli, manifesting physically, chemically, or emotionally.

Retina

A layer at the back of the eyeball containing cells sensitive to light, which trigger nerve impulses that pass via the optic nerve to the brain.