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

question 129

Essay

Britta, Inc., a U.S. corporation, reports foreign-source income and pays foreign taxes as follows. $$\begin{array} { l r r } & \text { Income } & \text { Taxes } \\\text { Passive category } & \$ 200,000 & \$ 10,000 \\\text { General limitati on category } & 800,000 & 350,000\end{array}$$ 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?

---

Definitions:

Spelling

The act of correctly arranging the letters that form a word in their proper sequence.

Flipped

Turned over or rotated to the opposite side, typically to achieve a desired outcome or to indicate a change.

Conscience

An inner feeling or voice acting as a guide to rightness or wrongness of one's behavior.

Sincerely

A form of sign-off in correspondence that indicates genuineness and goodwill.