If There Is Not Enough Gross Tax Liability to Use

question 21

Multiple Choice

If there is not enough gross tax liability to use the foreign tax credit, _____.

• A)it expires unused
• B)it is carried back two years or forward 20 years
• C)it is carried back three years or forward five years
• D)it is carried back one year or forward 10 years

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Definitions:

Simplest Form

Refers to the state of an algebraic expression when it has been reduced to the most basic or simplified version without changing its value.

Reciprocal

The inverse of a number or expression; for a nonzero number \(x\), its reciprocal is \(1/x\).

Simplest Form

A term used to describe an expression, fraction, or other mathematical entity that has been reduced to its most basic form, eliminating any common factors or simplifying variables.

Repeated Addition

Repeated addition is the process of adding the same number multiple times, which is a foundational principle behind multiplication.