Ames Corporation Has a Precredit U

question 74

Multiple Choice

Ames Corporation has a precredit U.S.tax of $340,000 on $1,000,000 of taxable income in 2017.Ames has $600,000 of foreign source taxable income and paid $120,000 of income taxes to the Australian government on this income.All of the foreign source income is treated as general category income for foreign tax credit purposes.Ames's foreign tax credit on its 2017 tax return will be:

• A) $72,000.
• B) $120,000.
• C) $204,000.
• D) $340,000.

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Definitions:

ATP

Adenosine Triphosphate, a molecule that stores and transfers energy within cells, critical for metabolic processes.

Lactic Acid

An organic compound produced in muscles during intense activity and associated with muscle fatigue.

Cardiorespiratory Functioning

The ability of the heart and lungs to supply oxygen-rich blood to the muscles during sustained physical activity.

ATP-CP System

A short-term energy system that provides immediate energy through the breakdown of adenosine triphosphate (ATP) and creatine phosphate (CP) during high-intensity, short-duration exercises.