What is his foreign tax credit


Jim has foreign income. He earns $25,000 from Country A which taxes the income at a 20 percent rate. He also has income from Country B of $15,000. Country B taxes the $15,000 at a 10 percent rate. His U.S. taxable income is $90,000, which includes the foreign income. His U.S. income tax on all sources of income before credits is $19,000. What is his foreign tax credit?

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Accounting Basics: What is his foreign tax credit
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