Seller is a U.S. online software retailer that in 2021 has $4,000,000 in sales to Country X; and of this amount $3,000,000 is net foreign source income (gross foreign source income less related deductions). The U.S. does not have a tax treaty with Country X. Seller pays $900,000 in Country X tax on this income. On this same net income Seller pays U.S. federal income tax of $630,000 ($3,000,000 x 21%). Based only on this information, Seller will receive a foreign tax credit of which one of the following amounts? Select one: a. $630,000 b. $840,000 c. $900,000 d. $3,000,000

Answer rating: 100% (QA)

Based on the provided information Seller will receive a foreign tax credit of 900000 T... View the full answer