Which of the Following Foreign Taxes Is Not Creditable for U.S

question 3

Multiple Choice

Which of the following foreign taxes is not creditable for U.S. tax purposes?

• A)Direct taxes paid by a U.S. corporation on income earned in a foreign branch.
• B)Income taxespaid to a foreign taxing authority on a dividend received by a U.S. corporation from its 100 percent owned foreign subsidiary.
• C)Withholding taxes imposed on a dividend received by a U.S. corporation from its 100 percent owned foreign subsidiary.
• D)All of these taxes are creditable.

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Definitions:

Bypassing

The act of avoiding or circumventing an obstacle or pathway, often used in medical terms to describe surgical procedures that reroute bodily functions.

Blockage

An obstruction that prevents movement or flow, often referring to the clogging of passages or pathways in biological or mechanical systems.

Ultraviolet Lamp

A lamp designed to emit ultraviolet (UV) light, used in various applications, including disinfection, curing of materials, and skin treatment.

Skin

The body's largest organ, which acts as a barrier protecting the body from external elements, helps regulate temperature, and provides sensory information.