Qwan, a U.S. corporation, reports $250,000 interest expense for the tax year. None of the interest relates to nonrecourse debt or loans from affiliated corporations. Qwan's U.S. and foreign assets are reported as follows. How should Qwan assign its interest expense between U.S. and foreign sources to maximize its FTC for the current year?

Question

Qwan, a U.S. corporation, reports $250,000 interest expense for the tax year. None of the interest relates to nonrecourse debt or loans from affiliated corporations. Qwan's U.S. and foreign assets are reported as follows.  How should Qwan assign its interest expense between U.S. and foreign sources to maximize its FTC for the current year?

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The Answer of Qwan, a U.S. corporation, reports $250,000 interest expense for the tax year. None of the interest relates to nonrecourse debt or loans from affiliated corporations. Qwan's U.S. and foreign assets are reported as follows.  How should Qwan assign its interest expense between U.S. and foreign sources to maximize its FTC for the current year?

Qwan, a US