3 Qualified Employees × $6,000 Limit on Wages for Each

3 qualified employees × $6,000 limit on wages for each employee ×
40%
$7,200
= = b. The wage deduction for 2019 is $492,800 [$500,000 (total wages) - $7,200 (credit)].
POINTS: 1
-Summer Corporation's business is international in scope and is subject to income taxes in several countries.
Summer's earnings and income taxes paid in the relevant foreign countries are: $$\begin{array} { l r r } \text { Country } & \text { Income } & \text { Taxes } \\\text { A } & \$ 1,000,000 & \$ 500,000 \\\text { B } & 300,000 & 30,000 \\\text { C } & \underline { 400,000 } & \underline { 120,000 } \\\text { Total } & \underline { \$ 1,700,000 } & \underline { \$ 650,000 }\end{array}$$ If Summer Corporation's worldwide income subject to taxation in the United States is $2,400,000 and the U.S. income tax due prior to the foreign tax credit is $504,000, compute the allowable foreign tax credit. If, instead, the total foreign income taxes paid were $250,000, compute the allowable foreign tax credit.