Edward has $40,000 of income from a country that imposes a 42-percent income tax and $30,000 of income from a country that imposes a 36 percent income tax. In addition to the foreign income, he has taxable income from US sources of $130,000 and a US tax liability, before credits, of $60,000. The amount of Edward’s foreign tax credit is:
Edward has $40,000 of income from a country that imposes a 42-percent income tax and $30,000 of income from a country that imposes a 36 percent income tax. In addition to the foreign income, he has taxable income from US sources of $130,000 and a US tax liability, before credits, of $60,000. The amount of Edward’s foreign tax credit is:
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter16: Multijurisdictional Taxation
Section: Chapter Questions
Problem 18P
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Edward has $40,000 of income from a country that imposes a 42-percent income tax and $30,000 of income from a country that imposes a 36 percent income tax. In addition to the foreign income, he has taxable income from US sources of $130,000 and a US tax liability, before credits, of $60,000. The amount of Edward’s foreign tax credit is:
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