Without the foreign tax credit, double taxation would result when:
a. The United States taxes the U.S.-source income of a U.S. resident.
b. A foreign country taxes the foreign-source income of a nonresident alien.
c. The United States and a foreign country both tax the foreign-source income of a U.S. resident.
d. Terms of a tax treaty assign income taxing rights to the U.S.
c
RATIONALE: Double taxation would not result due to taxation of the U.S.-source income (a.) because it would not be subject to foreign taxation, to the foreign-source income of a nonresident alien because it would not be subject to U.S. taxation (b.), or in the case where the treaty prevented the foreign country from taxing the income (d.).
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