Which of the Following Statements Regarding Income Sourcing Is Correct

question 88

Multiple Choice

Which of the following statements regarding income sourcing is correct?

• A) Everything else equal, larger foreign-source income increases the foreign tax credit limitation for U.S. persons.
• B) Everything else equal, larger foreign-source income decreases the foreign tax credit limitation for U.S. persons.
• C) Everything else equal, changing foreign-source income has no impact on the foreign tax credit limitation for U.S. persons.
• D) Everything else equal, larger U.S.-source income increases the foreign tax credit limitation for U.S. persons.

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Definitions:

Quantity

Quantity refers to a measurable amount or number of items.

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.

Relation

The way in which two or more concepts, objects, or people are connected.