A U.S.corporation receives a $200,000 dividend from a 20% owned foreign corporation.The deemed-paid taxes attributable to this dividend are $40,000 and foreign taxes withheld on remittance of the dividend are $30,000.The U.S.corporation's U.S.tax liability before FTC is $350,000,the gross dividend income is $240,000,and worldwide taxable income is $1 million.The U.S.corporation's FTC for the taxable year is equal to:

Question

Quizplus · Accepted Answer

Lesser of $70,000 ($30,000 + $40,000)or the FTC limit of $84,000 [$350,000 F1F1F1S1F1F1F10 ($240,000 ÷ $1,000,000)].

A USCorporation Receives a $200,000 Dividend from a 20% Owned Foreign