During the year, Green Corporation (a U.S. corporation) has U.S.-source income of $750,000 and foreign income of $500,000. The foreign-source income generates foreign income taxes of $240,000. The U.S. income tax before the foreign tax credit is $425,000. Green Corporation's foreign tax credit is:

Question

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The foreign tax credit is limited to the U.S. tax liability on the foreign-source income. The limit is calculated as (foreign-source income / total income) * U.S. tax before credit. Here, it's ($500,000 / $1,250,000) * $425,000 = $170,000.

During the Year, Green Corporation (A U