Pierre Corporation Has a Precredit U

question 36

Multiple Choice

Pierre Corporation has a precredit U.S.tax of $510,000 on $1,500,000 of taxable income in 2017.Pierre has $300,000 of foreign source taxable income characterized as general category income and $150,000 of foreign source taxable income characterized as passive category income.Pierre paid $90,000 of foreign income taxes on the general category income and $15,000 of foreign income taxes on the passive category income.What amount of foreign tax credit (FTC) can Pierre use on its 2017 U.S.tax return and what is the amount of the carryforward,if any?

• A) $153,000 FTC with $0 carryforward.
• B) $105,000 FTC with $0 carryforward.
• C) $105,000 FTC with $48,000 carryforward.
• D) $117,000 FTC with $0 carryforward.

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Definitions:

Colorist Painting

A style of painting where color is the main focus, often used to convey emotions and atmospheres.

Form and Line

Fundamental elements of design and visual art, where "form" refers to the shape and structure of objects and "line" to the continuous mark or edge defining those forms.

Ingres

A French Neoclassical painter, renowned for his precision in drawing and clear line, as well as his masterful portrayal of the human form.

Pre-Raphaelite Brotherhood

A 19th-century English art movement whose members wished to create art free from what they considered the artificial manner propagated in the academies by the successors of Raphael.