Britta,Inc Britta's Worldwide Taxable Income Is $1,600,000 and U

question 45

Essay

Britta,Inc.,a U.S.corporation,reports foreign-source income and pays foreign taxes as follows.
$\begin{array}{ll}&\textbf{Income}&\textbf{Taxes}\\\text { Passive category } & \$ 200,000&\$ 10,000 \\\text { General limitation category } & 800,000& 350,000 \\\end{array}$ Britta's worldwide taxable income is $1,600,000 and U.S.taxes before FTC are $560,000 (assume a 35% tax rate).What is Britta's U.S.tax liability after the FTC?

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