USCo, a US

question 71

Multiple Choice

USCo, a U.S. corporation, receives $700,000 of foreign-source passive income on which foreign taxes of $70,000 are withheld. Its worldwide taxable income is $1,500,000, and its U.S. tax liability before the foreign tax credit is $315,000. What is USCo's allowed foreign tax credit?

• A) $70,000
• B) $147,000
• C) $315,000
• D) $385,000

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Definitions:

Installment

A portion of a debt or loan that is paid at regular intervals, usually monthly, as part of a payment plan.

Child-free

The decision by individuals or couples not to have children, either for personal, environmental, or other reasons.

Representative

A person chosen or appointed to act or speak for another or others, typically in a political or organizational context.

Real Families

A concept emphasizing the diversity of family structures, challenging the traditional notion of a family being composed of two heterosexual parents and their biological children.