Assignment: International Tax
In 2012, USCo, a US corporation, earned $1000 of US source income and $1000 of foreign source income. USCo paid $200 of foreign tax on the foreign source income.
In 2013, USCo earned $1000 of US source income and $3000 of foreign source income. USCo paid $1500 of foreign tax on the foreign source income.
In 2014,USCo earned $2000 of US source income and $2000 of foreign source income. USCo paid $400 of foreign tax on the foreign source income. Assume the US tax rate is 35%.
How much foreign tax credit will USCo be able to take in 2012, 2013 and 2014?
What is USCo's post-credit US tax liability in 2012, 2013 and 2014?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.