Corporation foreign tax credit


During the year, Purple Corporation (a U.S. Corporation) has U.S. source income of $1,800,000 and foreign income of $600,000. The foreign-source income generates foreign income taxes of $150,000. The U.S. income tax before the foreign tax credit is $816,000. PurpIe Corporation's foreign tax credit is:

a. $112,500.

b. $150,000.

c. $204,000.

d. $816,000.

e. None of the above.

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Accounting Basics: Corporation foreign tax credit
Reference No:- TGS062651

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