Global Corporation, a U Global Paid $25,000 Income Tax to Country X

question 37

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. $$\begin{array} { l r } \text { U.S. source income } & \$ 700,000 \\\text { Foreign source income--Country X } & \underline { 100,000 } \\\text { Total } & \$ 800,000\end{array}$$ Global paid $25,000 income tax to Country X. What is Global's U.S. tax liability if it takes the foreign tax credit?

• A) $247,000
• B) $238,000
• C) $222,000
• D) $272,000

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