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In a Given Year,the U

Question 57

Multiple Choice

In a given year,the U.S.IRS places an overall limitation applied to foreign tax credits.

A) the maximum tax credit is figured on world-wide foreign-source income; losses in one country can offset profits in another.
B) the maximum tax credit is figured on foreign-source income in each country; losses in one country cannot offset profits in another.
C) the overall limitation is limited to the amount of tax that would be due on the foreign-source income if it had been earned in the United States.
D) the maximum tax credit is figured on world-wide foreign-source income; losses in one country can offset profits in another,and the overall limitation is limited to the amount of tax that would be due on the foreign-source income if it had been earned in the United States.

Correct Answer: