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

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Definitions:

Short-Term Note

A promissory note due for repayment within a short period, typically less than a year, used by companies to manage cash flow or secure short-term financing.

Company's Records

Documentation that encompasses all the financial transactions, agreements, and obligations of a business.

Check Drawn

A check issued by an account holder, instructing the bank to pay a specified sum of money from the account holder's account.

Payment of a Voucher

The process of issuing money in return for a voucher that proves an expense has been incurred.