Global Corporation, a U $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

question 58

Multiple Choice

Global Corporation, a U.S. multinational, began operations this year. Global had pretax U.S. source income and foreign source income as follows.
Corporate tax rate schedule.
U.S. source income $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 700,000
Foreign source income-Country X $\quad$$\quad$ 100,000
Total $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 800,000
Global paid $15,000 income tax to Country X. What is Global's U.S. tax liability if it takes the foreign tax credit?

• A) $153,000
• B) $168,000
• C) $147,000
• D) $238,000

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Definitions:

Infectious Disease

Illnesses caused by pathogens such as bacteria, viruses, fungi, or parasites, which are spread directly or indirectly from person to person.

Condoms

Latex or synthetic sheaths worn on the penis during sexual activity to prevent pregnancy and reduce the risk of sexually transmitted infections.

STIs

Sexually Transmitted Infections, which are infections transmitted through sexual contact.

Transmission

The act or process by which something is spread or passed on from one place or person to another.