Archie, a U

question 7

Multiple Choice

Archie, a U.S.resident, receives $120,000 of foreign-source passive category income on which foreign taxes of $22,500 are withheld.His worldwide taxable income is $300,000 (before personal exemptions) .Archie's U.S.tax liability before FTC is $70,000.What is Archie's FTC?

• A)$0.
• B)$22,500.
• C)$27,695.
• D)$28,000.
• E)None of the above.

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