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

question 101

Essay

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

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