Ashley, a U

question 5

Multiple Choice

Ashley, a U.S. citizen, works in England for part of the year. She earns $40,000 in England, paying $10,000 in income taxes to the British government. Her U.S. income is $60,000 and she pays $12,000 in U.S. taxes. Her taxes on her worldwide income are $20,000. What is Ashley's foreign tax credit? Assume she does not qualify for the foreign-earned income exclusion.

• A)$8,000
• B)$10,000
• C)$12,000
• D)none of the above

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Definitions:

Illegal Immigration

The unauthorized or illegal entry of individuals into a country where they are not natives or do not possess citizenship.

Employment

The state of having a paid position of regular work, contributing to the workforce and economy.

Equilibrium

A condition where the amount of goods available and the desire for them are equal, leading to consistent prices and the amount of goods sold.

Illegal Immigrant Workers

refers to individuals who are employed in a country without the legal right to work there, often under exploitative conditions.