Orion, Inc., a U.S. corporation, reports foreign-source income and pays foreign taxes for the tax year as follows.

	Income		Taxes
Passive basket		$150,000		$13,000
General basket		300,000		150,000

Orion's worldwide taxable income is $600,000, and U.S. taxes before the foreign tax credit (FTC) are $210,000 (assume a 35% U.S. tax rate).

Orion's FTC for the "passive basket" is $____ and for the "general basket" the credit is $____

Orion's U.S. tax liability after the FTC is $____

Answer rating: 100% (QA)

FTC passive basket FTC is lesser of foreign tax paid13000or the limitations ... View the full answer