Jenkin Corporation reported the following for its first two taxable years. Assume that the tax rates for both the years are the same. Year 1 Year 2 U.S. source income$500,000 $600,000 Foreign source income 200,000 400,000 Taxable income$700,000 $1,000,000 Foreign tax paid$80,000 $50,000 Calculate Jenkin's U.S. tax liability for Year 2.
A. $132,000
B. $160,000
C. $210,000
D. $78,000
Answer: A
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