Bismarck Corporation has a precredit U.S. tax of $210,000 on $1,000,000 of taxable income in 2021....

 

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Bismarck Corporation has a precredit U.S. tax of $210,000 on $1,000,000 of taxable income in 2021. Bismarck has $200,000 of foreign source taxable income characterized as foreign branch income and $50,000 of foreign source taxable income characterized as passive category income. Bismarck paid $80,000 of foreign income taxes on the foreign branch income and $10,000 of foreign income taxes on the passive category income. What amount of foreign tax credit (FTC) can Bismarck use on its 2021 U.S. tax return and what is the amount of the carryforward, if any? $90,000 FTC with $0 carryforward $52,000 FTC with $0 carryforward $16,500 FTC with $73,500 carryforward $52,000 FTC with $38,000 carryforward Bismarck Corporation has a precredit U.S. tax of $210,000 on $1,000,000 of taxable income in 2021. Bismarck has $200,000 of foreign source taxable income characterized as foreign branch income and $50,000 of foreign source taxable income characterized as passive category income. Bismarck paid $80,000 of foreign income taxes on the foreign branch income and $10,000 of foreign income taxes on the passive category income. What amount of foreign tax credit (FTC) can Bismarck use on its 2021 U.S. tax return and what is the amount of the carryforward, if any? $90,000 FTC with $0 carryforward $52,000 FTC with $0 carryforward $16,500 FTC with $73,500 carryforward $52,000 FTC with $38,000 carryforward

Answer rating: 100% (QA)

52000 FTC with 38000 carryforward The foreign tax credit in the general categor... View the full answer