Identify Which of the Following Statements Is True

question 69

Multiple Choice

Identify which of the following statements is true.

• A)Foreign taxes paid in excess of the foreign tax credit limitation can be carried back to the previous three tax years and then carried over to the succeeding five tax years.
• B)When a taxpayer reports excess foreign tax credits in more than one year,the excess credits are used in a last-in-first-out (LIFO)manner.
• C)When computing the foreign tax credit limitation,taxable income for individual taxpayers is computed without a personal exemption deduction.
• D)All of the above are false.

---

Definitions:

Lien

With respect to goods, it is the right to retain the goods until payment is made.

Mortgagee

The lender or financial institution in a mortgage agreement, who holds the mortgage as a security for the loan provided to the borrower.

Construction Lien

A legal claim against a property by a contractor or subcontractor for unpaid work or materials.

Building Contract

A legal agreement detailing the terms under which construction work is to be carried out, including obligations, timelines, and payment details.