Peanut, Inc., a domestic corporation, receives $500,000 of foreign-source interest income on which foreign taxes of $5,000 are withheld. Its worldwide taxable income is $900,000, and U.S. tax liability before FTC is $315,000. What is Peanut's foreign tax credit?
A) $500,000.
B) $315,000.
C) $175,000.
D) $5,000.
Correct Answer:
Verified
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