Foreign-source interest income


Boyles, Inc., a domestic corporation, receives $200,000 of foreign-source interest income on which foreign taxes of $2,000 are withheld. Its worldwide taxable income is $500,000, and U.S. Tax liability before FTC is $175,000. What is Boyles" FTC?

A. $70,000.

B. $2,000.

C. $72,000.

D. $68,000.

E. None of the above.

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Accounting Basics: Foreign-source interest income
Reference No:- TGS092384

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