Britta, Inc., a U.S. corporation, reports foreign-source income and pays foreign taxes as follows.
$\begin{array}{lcc}
& \text { Income } & \text { Taxes } \
\text { Passive category } & \$ 200,000 & \$ 10,000 \
\text { General limitation category } & 800,000 & 350,000
\end{array}$
Britta's worldwide taxable income is $1,600,000 and U.S. taxes before FTC are $560,000 (assume a 35% tax rate). What is Britta's U.S. tax liability after the FTC?

Question

Britta, Inc., a U.S. corporation, reports foreign-source income and pays foreign taxes as follows.
 $\begin{array}{lcc} 
& \text { Income } & \text { Taxes } \
\text { Passive category } & \$ 200,000 & \$ 10,000 \
\text { General limitation category } & 800,000 & 350,000
\end{array}$ 
Britta's worldwide taxable income is $1,600,000 and U.S. taxes before FTC are $560,000 (assume a 35% tax rate). What is Britta's U.S. tax liability after the FTC?

Quizplus · Accepted Answer

The Answer of Britta, Inc., a U.S. corporation, reports foreign-source income and pays foreign taxes as follows.
 $\begin{array}{lcc} 
& \text { Income } & \text { Taxes } \
\text { Passive category } & \$ 200,000 & \$ 10,000 \
\text { General limitation category } & 800,000 & 350,000
\end{array}$ 
Britta's worldwide taxable income is $1,600,000 and U.S. taxes before FTC are $560,000 (assume a 35% tax rate). What is Britta's U.S. tax liability after the FTC?

Britta, Inc Britta's Worldwide Taxable Income Is $1,600,000 and U