If There Is Not Enough Gross Tax Liability to Use

question 141

Multiple Choice

If there is not enough gross tax liability to use the foreign tax credit,________.

• A)it expires unused
• B)it is carried back 2 years or forward 20 years
• C)it is carried back 3 years or forward 5 years
• D)it is carried back 1 year or forward 10 years

---

Definitions:

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account.

Discount Rate

The interest rate used to discount future cash flows to present value in various financial models.

Cash Inflows

The total amount of money received by a company or project, from various sources including operations, investments, and financing.

Purchase Price

The cost paid to acquire a good or service, including initial acquisition costs and any associated transaction fees.