Fredericton Corp. earned $60,000 in foreign business income in the current fiscal year. Tax was paid to the foreign government in the amount of $7,500 on this income. Fredericton Corp. has correctly calculated its federal Tax Payable before the foreign business income tax credit as $15,250, calculated as follows: What is the amount of Tax Otherwise Payable for purposes of the foreign business income tax credit calculation?

Question

Fredericton Corp. earned $60,000 in foreign business income in the current fiscal year. Tax was paid to the foreign government in the amount of $7,500 on this income. Fredericton Corp. has correctly calculated its federal Tax Payable before the foreign business income tax credit as $15,250, calculated as follows:  What is the amount of Tax Otherwise Payable for purposes of the foreign business income tax credit calculation?

Quizplus · Accepted Answer

The Answer of Fredericton Corp. earned $60,000 in foreign business income in the current fiscal year. Tax was paid to the foreign government in the amount of $7,500 on this income. Fredericton Corp. has correctly calculated its federal Tax Payable before the foreign business income tax credit as $15,250, calculated as follows:  What is the amount of Tax Otherwise Payable for purposes of the foreign business income tax credit calculation?