Question: Harold Inc a domestic corporation earned 500 000 from foreign manufacturing
Harold, Inc., a domestic corporation, earned $500,000 from foreign manufacturing activities on which it paid $150,000 of foreign income taxes. Harold's foreign sales income is taxed at a 45% foreign tax rate. Both sales and manufacturing income are assigned to the general limitation basket. What amount of foreign sales income can Harold earn without generating any excess FTCs for the current year? Assume a 35% U.S. rate.
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