A US Citizen Accrued $120,000 of Creditable Foreign Taxes Last Year

question 45

Multiple Choice

A U.S. citizen accrued $120,000 of creditable foreign taxes last year. The citizen's foreign tax credit limitation for last year is $90,000 (only a single limitation need be calculated) . The excess foreign tax credit limitation for the year preceding the year in which the excess foreign taxes were incurred is $2,000. A similar $2,000 excess foreign tax credit limitation position is expected in each of the next 10 years. What portion of the excess foreign taxes can be expected to be noncreditable because of the foreign tax credit limitation?

• A)$0
• B)$2,000
• C)$8,000
• D)none of the above

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Definitions:

Construct Validity

The extent to which a test measures what it claims, or purportedly aims, to be measuring.

Independent Variable

The factor in a study that is deliberately altered by the investigator to observe its effect on the outcome variable.

Experimental Conditions

The controlled aspects of a scientific experiment designed to test the effects of independent variables on dependent variables.

Quantitative

An approach involving the collection and analysis of numerical data to understand patterns, relationships, and outcomes in research.