Which of the following expenses incurred by a U.S. corporation is not subject to special apportionment rules for foreign tax credit purposes?
A)Interest
B)Research and experimental
C)Advertising
D)State and local income taxes

Question

Quizplus · Accepted Answer

Interest expense, research and experimental expense, and state and local income taxes are all subject to special apportionment rules for foreign tax credit purposes, which factor in the percentage of foreign income earned by the taxpayer. However, advertising expense is not subject to these special rules and can simply be included in the general foreign tax credit calculation.

Which of the Following Expenses Incurred by a U