Krebs,Inc,A U

question 34

Multiple Choice

Krebs,Inc.,a U.S.corporation,operates an unincorporated branch manufacturing operation in the U.K.Krebs,Inc.,reports $900,000 of taxable income from the U.K.branch on its U.S.tax return,along with $1,600,000 of taxable income from its U.S.operations.The U.K.branch income is all general limitation basket income.Krebs paid $270,000 in U.K.income taxes related to the $900,000 in branch income.Assuming a U.S.tax rate of 35%,what is Krebs' U.S.tax liability after any allowable foreign tax credits?

• A)$0
• B)$270,000
• C)$605,000
• D)$875,000

---

Definitions:

Numbers Greater

In programming and mathematics, a comparison where values are evaluated to find those greater than a specified number.

<=200

A relational operator that means "less than or equal to 200," often used in programming and mathematical expressions to set conditions.

Less Than

A relational operator that compares two values, returning true if the first value is smaller than the second.

Not Equal To

A comparison operator used in programming and database queries to check if two values are different.