Mega,Inc.,a U.S.multinational,has pretax U.S.source income and foreign source income as follows.Corporate tax rate schedule. Mega paid $20,000 income tax to Country M.Mega has a $25,000 foreign tax credit carryforward.What is Mega's U.S.tax liability if it takes the foreign tax credit?

Question

Mega,Inc.,a U.S.multinational,has pretax U.S.source income and foreign source income as follows.Corporate tax rate schedule.   Mega paid $20,000 income tax to Country M.Mega has a $25,000 foreign tax credit carryforward.What is Mega's U.S.tax liability if it takes the foreign tax credit?

Quizplus · Accepted Answer

The Answer of Mega,Inc.,a U.S.multinational,has pretax U.S.source income and foreign source income as follows.Corporate tax rate schedule.   Mega paid $20,000 income tax to Country M.Mega has a $25,000 foreign tax credit carryforward.What is Mega's U.S.tax liability if it takes the foreign tax credit?

Mega,Inc,A U