In 2012, US Co, a US corporation, earned $1000 of US source income and $1000 of foreign
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In 2012, US Co, a US corporation, earned $1000 of US source income and $1000 of foreign source income. US Co paid $200 of foreign tax on the foreign source income.
In 2013, US Co earned $1000 of US source income and $3000 of foreign source income. US Co paid $1500 of foreign tax on the foreign source income.
In 2014, US Co earned $2000 of US source income and $2000 of foreign source income. US Co paid $400 of foreign tax on the foreign source income. Assume the US tax rate is 35%.
How much foreign tax credit will US Co be able to take in 2012, 2013 and 2014?
What is US Co's post-credit US tax liability in 2012, 2013 and 2014?
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
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