Bismarck Corporation Has a Precredit U

question 8

Multiple Choice

Bismarck Corporation has a precredit U.S. tax of $210,000 on $1,000,000 of taxable income in 2018. Bismarck has $200,000 of foreign source taxable income characterized as foreign branch income and $50,000 of foreign source taxable income characterized as passive category income. Bismarck paid $80,000 of foreign income taxes on the foreign branch income and $10,000 of foreign income taxes on the passive category income. What amount of foreign tax credit (FTC) can Bismarck use on its 2018 U.S. tax return and what is the amount of the carryforward, if any?

• A) $90,000 FTC with $0 carryforward
• B) $52,000 FTC with $0 carryforward
• C) $52,000 FTC with $38,000 carryforward
• D) $16,500 FTC with $73,500 carryforward

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Definitions:

Precoded Data

Information that has been assigned predefined codes for the purpose of efficient processing and analysis.

Encounter Data

Encounter data refers to the detailed information collected during healthcare encounters, documenting patient services and interactions.

Electronic Medical Record

A digital version of a patient's paper chart, allowing for easier access and management of a patient's medical history.

Diagnosis

The identification of the nature of an illness or other problem by examination of the symptoms and signs.