Pursco, Inc. is a US CCorporation that purchases scientific equipment from an unrelated thirdparty supplier for resale worldwide and pays corporate tax at a rate. During the current year, Pursco, Inc. has $ of sales, a gross profit of $ and incurs $ of selling, general, and administrative expenses SG&A thereby generating US worldwide taxable income of $ Pursco, Inc.s sales include $ of sales to foreign customers. The gross profit on these foreign sales is $ Pursco, Inc. transferred title abroad on all these foreign sales; hence, the entire $ of gross profit is classified as foreignsource income. Although Pursco, Inc. paid no foreign tax on these sales to foreign customers, it has $ of excess foreign tax credits from the prior year in the same general foreign tax credit limitation basket iIt is the general basket.

Compute Pursco, Inc.s total foreign tax credit, as well as the amount of excess credits or excess limitation using gross profit as a basis for apportioning SG&Aprovide a description of the tax rules, including relevant code sections being applied in the problem and why the taxpayer qualifies for that treatment.

How can Pursco, Inc. achieve a larger foreign tax credit?