Jovar Inc., a U.S. multinational, began operations this year. Jovar had pretax U.S. source income and foreign source income as follows:    U.S. source income$600,000 Foreign source income-Country O 100,000 Total$700,000  Jovar paid $50,000 income tax to Country O. Compute Jovar's U.S. tax liability if it takes the foreign tax credit.

A. $204,000
B. $147,000
C. $97,000
D. $126,000


Answer: D

Business

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