Which of the following statements about the foreign tax credit limitation is false?
A. Cross-crediting of taxes paid in high-tax and low-tax foreign jurisdictions can increase allowable foreign tax credits.
B. The foreign tax credit cannot exceed the U.S. tax on foreign source income.
C. Foreign tax credits in excess of the limit can be carried forward indefinitely.
D. The foreign tax credit limitation is based on the ratio of foreign source income to total taxable income.
Answer: C
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