Mega, Inc, a U

question 1

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

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Confined within bounds; restricted in extent, number, scope, or action.

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