Ashley, a U

question 79

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 U.S. taxes on her worldwide income are $20,000. What is Ashley's excess foreign tax credit? Assume she does not qualify for the foreign-earned income exclusion.

• A)$0
• B)$2,000
• C)$4,000
• D)none of the above

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Definitions:

Computer Language

A set of instructions and syntax used to create programs that enable computers to perform specific tasks.

Compiler

A program that translates code written in a high-level programming language into machine language so that a computer can understand and execute it.

Word Processing

Word processing is the use of computer software to create, edit, format, and print text documents, ranging from simple letters to complex reports.

Mainframe Computers

Large and powerful computing systems used for bulk data processing, such as census, industry and consumer statistics, and financial transaction processing.