Adrienne has total taxable income of $93,000 which includes $10,000 taxable income from India.She paid $2,800 in foreign income taxes,and her U.S.tax liability is $25,210.Adrienne's foreign tax credit is:

Question

Quizplus · Accepted Answer

To determine Adrienne's foreign tax credit, we need to compare the amount of foreign income tax paid to the U.S. tax liability on the same income.

Adrienne's U.S. tax liability is $25,210, and she has paid $2,800 in foreign income taxes. Since the foreign income tax paid is less than the U.S. tax liability on the same income, Adrienne is eligible for a foreign tax credit.

The foreign tax credit is limited to the lesser of the foreign income tax paid or the U.S. tax liability on the same income, so Adrienne's foreign tax credit is $2,800 (the amount of foreign tax paid).

Therefore, the correct answer is B) $2,711.

Adrienne Has Total Taxable Income of $93,000 Which Includes $10,000