A Japanese Branch of a U

question 19

Multiple Choice

A Japanese branch of a U.S. corporation paid $4,200,000 in taxes to the government of Japan on income it generated there. The corporation is subject to a 35% tax rate in the U.S.
-How much foreign tax credit can be taken in calculating the taxes owed to the U.S.on $10,000,000 of Japanese branch income?

• A)$4,200,000
• B)$3,500,000
• C)$0
• D)$7,000,000

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