If in 2006 the Taxpayer Has a Foreign Loss of $30,000

question 46

Multiple Choice

If in 2006 the taxpayer has a foreign loss of $30,000 in the general limitation category,foreign-source income of $100,000 in the high withholding interest limitation category and $200,000 in the passive limitation category basket,the numerators for the FTC limitation baskets are:

• A)$70,000 in the high withholding interest category and $200,000 in the passive limitation category.
• B)$100,000 in the high withholding interest category and $170,000 in the passive limitation category.
• C)$100,000 in the high withholding interest category and $200,000 in the passive limitation category.
• D)$0 in the general limitation category, $90,000 in the high withholding interest category, and $180,000 in the passive limitation category.
• E)None of the above.

Calculate time required for completing a task based on given rate.

Compute volume and understand conversions between different units of volume.

Determine the quantity of material needed for a construction project.

Apply proportion and ratio concepts to solve real-life problems.

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Definitions:

Offshoring

The relocation of business processes or manufacturing to a foreign country, typically to leverage lower costs or other benefits.

Infant Industry

A new or emerging industry that may be protected by the government from international competition to allow it to grow and establish itself.

Foreign Competition

The competitive pressure that domestic companies face from the products and services offered by foreign firms in the same market.

General Agreement on Tariffs and Trade

An international trade treaty aimed at reducing customs tariffs and other trade barriers to foster global economic trade.