Ashley, a U.S. citizen, works in England for part of the year. She earns $40,000 in England, paying $10,000 in income taxes to the British government. Her U.S. income is $60,000 and she pays $12,000 in U.S. taxes. Her taxes on her worldwide income are $20,000. What is Ashley's foreign tax credit? Assume she does not qualify for the foreign-earned income exclusion.
A) $8,000
B) $10,000
C) $12,000
D) none of the above
A) $8,000
Lower of foreign taxes paid ($10,000) or the limit [20,000 × (40,000/100,000) = $8,000]
You might also like to view...
When Brian explains to his supervisor that advertising communication may not lead to immediate behavioral response or purchase, and uses a purchase funnel analogy to explain that a series of effects must occur, with each step fulfilled before the consumer can move to the next stage, he is explaining the ________ model of how advertising works.
A. hierarchy of effects B. AIDA C. diffusion of innovations D. innovation adoption E. information processing
Salon Finish is test marketing its new smoothing shampoo by assessing consumer satisfaction in laboratory stores where hair is washed and blown dry. Salon Pro is using controlled test marketing in this scenario
Indicate whether the statement is true or false
How does the statement of cash flows helps readers understanding?
Which of the following does not describe Zappos database?
A. Zappos database was highly flexible. B. Zappos database was highly secure. C. Zappos database was high scalable. D. Zappos database was highly redundant.