Which of the Following Statements Regarding the Translation of Foreign

question 97

Multiple Choice

Which of the following statements regarding the translation of foreign income taxes is true?

• A) Translation of foreign taxes into U.S. dollars helps manage the U.S. balance of trade.
• B) Foreign taxes are translated into U.S. dollars only when such translation provides a tax benefit to the taxpayer.
• C) Foreign taxes typically are paid in a foreign currency and, thus, must be converted to U.S. dollars when used as an FTC on a U.S. return.
• D) Translation of foreign taxes into U.S. dollars encourages foreign corporations to set up operations in the United States.

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Definitions:

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