Winnie,Inc.,a U.S.corporation,receives a dividend of $400,000 from a non-CFC foreign corporation.Deemed-paid foreign taxes attributable to the dividend are $120,000.If Winnie elects the FTC,its gross income attributable to this dividend is $400,000.

Question

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When electing the Foreign Tax Credit (FTC), the gross income attributable to the dividend includes the deemed-paid foreign taxes, making it $520,000 ($400,000 dividend + $120,000 deemed-paid taxes).