Mega,Inc.,a U.S.multinational,has pretax U.S.source income and foreign source income as follows: Mega paid $15,000 income tax to Country M.Mega has a $25,000 foreign tax credit carryforward.What is Mega's U.S.tax liability if it takes the foreign tax credit?

Question

Mega,Inc.,a U.S.multinational,has pretax U.S.source income and foreign source income as follows:  Mega paid $15,000 income tax to Country M.Mega has a $25,000 foreign tax credit carryforward.What is Mega's U.S.tax liability if it takes the foreign tax credit?

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The Answer of Mega,Inc.,a U.S.multinational,has pretax U.S.source income and foreign source income as follows:  Mega paid $15,000 income tax to Country M.Mega has a $25,000 foreign tax credit carryforward.What is Mega's U.S.tax liability if it takes the foreign tax credit?

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