Mega, Inc, a U

question 75

Multiple Choice

Mega, Inc., a U.S. multinational, has pretax U.S. source income and foreign source income as follows. Mega paid $20,000 income tax to Country M. Mega has a $25,000 foreign tax credit carryforward. What is Mega's U.S. tax liability if it takes the foreign tax credit?

• A)$265,600
• B)$240,600
• C)$285,600
• D)$258,400