San Carlos Corporation, a U San Carlos Paid $100,000 Income Tax to Country W

question 2

Multiple Choice

San Carlos Corporation, a U.S. multinational, had pretax U.S. source income and foreign source income as follows. $$\begin{array} { l r } \text { U.S. source income } & \$ 400,000 \\\text { Foreign source income--Country W } & \underline { 300,000 } \\\text { Total } & \$ 700,000\end{array}$$ San Carlos paid $100,000 income tax to Country W. Calculate San Carlos' tax savings if it takes a foreign tax credit rather than deducting this tax.

• A) $100,000
• B) $66,000
• C) $34,000
• D) $0

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Sarbanes-Oxley Act Of 2002

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