World Sales, Inc World Sales Paid $50,000 Income Taxes to Country O

question 55

Multiple Choice

World Sales, Inc., a U.S. multinational, had pretax U.S. source income and foreign source income as follows: $\begin{array}{lr}\text {U. S. source income }&\$500,000\\\text {Foreign source income-Country \( O \) }&200,000\\\text { Total}&\$700,000\\\end{array}$
World Sales paid $50,000 income taxes to Country O. Assume World Sales' foreign source income does not qualify as foreign-derived intangible income. What is World Sales' U.S. tax liability if it deducts the foreign taxes paid?

• A) $147,000
• B) $97,000
• C) $136,500
• D) $221,000

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Definitions:

Virtual Reality

A simulated experience created by computer technology, which can replicate or create entirely different environments for the user to interact with.

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