Jenkin Corporation Reported the Following for Its First Two Taxable

question 46

Multiple Choice

Jenkin Corporation reported the following for its first two taxable years. Assume that the tax rates for both the years are the same. $\begin{array}{llr}& \text { Year 1}&\text { Year 2}\\ \text { U.S. source income } & 500,000 & \$ 600,000\\ \text { Foreign source income } & 200,000 & 400,000\\ \text {Taxable income } &\$700,000 & \$ 1,000,00\\ \text { Foreign tax paid } &\$80,000 & \$ 50,000\\\end{array}$
Calculate Jenkin's U.S. tax liability for Year 2. Assume Jenkin's foreign source income does not qualify as foreign-derived intangible income.

• A) $78,000
• B) $160,000
• C) $122,000
• D) $210,000

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