Kunst, a U

question 84

Multiple Choice

Kunst, a U.S. corporation, generates $100,000 of foreign-source income in the general income basket and $40,000 of foreign-source income in the passive income basket. Kunst's worldwide taxable income is $1,200,000, and its U.S. tax liability before FTC is $420,000. Foreign taxes attributable to the general income basket are $60,000 and to the passive income are $4,000. What is Kunst's foreign tax credit for the tax year?

• A) $64,000
• B) $39,000
• C) $35,000
• D) $4,000

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Definitions:

Ludus

A term from ancient Greek, often referring to playful love; in modern contexts, it describes love that is seen as a game or fun, without deep emotional attachment.

Mania

A mental health condition characterized by periods of extremely high energy, euphoria, or irritability, often seen in bipolar disorder.

Storge

A term describing love or affection, often focusing on the type of familial or platonic love that develops gradually from friendship.

Agape

A selfless, sacrificial, unconditional love, often seen as the highest form of love in certain philosophical and religious contexts.