Which of the Following Statements Regarding Translation of Foreign Taxes

question 121

Multiple Choice

Which of the following statements regarding translation of foreign taxes is true?

• A)Foreign taxes are typically paid in a foreign currency and thus must be converted to U.S. dollars when used as a FTC on a U.S. return.
• B)Foreign taxes are translated into U.S. dollars only when such translation provides a tax benefit to the taxpayer.
• C)Translation of foreign taxes into U.S. dollars helps manage the U.S. balance of trade.
• D)Translation of foreign taxes into U.S. dollars encourages foreign corporations to set up operations in the United States.
• E)None of the above.

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Definitions:

Closed Adoptions

An adoption process where there is no exchange of information or contact between the biological and adoptive families.

Birth Parents

The biological parents who gave birth to a child, as opposed to adoptive parents.

Multiethnic Placement Act

A law designed to prevent discrimination on the basis of race, color, or national origin in the placement of children for adoption or foster care.

Public Welfare Agencies

Government organizations responsible for providing social services to individuals and families in need, including financial aid, healthcare, and housing assistance.