Tree Inc. is a branch of Todd Corporation located in Foreignland. The corporate tax rate in Foreignland is 20% in year 1, and 23% in years 2 and 3. The corporate tax rate in the U.S. is 21% for all years. Below is additional information about different amounts: Year 1 Year 2 Year 3 Foreign Source Income 74000 94000 104000 Foreign Taxes Paid 14800 21620 23920 U.S. tax before FTC 15540 19740 21840 Questions: 1. What is the foreign tax credit allowed in the U.S. for each of the years? 2. What is the U.S. tax liability for each of the years? 3. In Year 3, how much excess foreign tax credit can Todd Corportation carry back?

Tree Inc. is a branch of Todd Corporation located in Foreignland. The corporate tax rate in Foreignland is 20% in year 1, and 23% in years 2 and 3. The corporate tax rate in the U.S. is 21% for all years. Below is additional information about different amounts: Year 1 Year 2 Year 3 Foreign Source Income 74000 94000 104000 Foreign Taxes Paid 14800 21620 23920 U.S. tax before FTC 15540 19740 21840 Questions: 1. What is the foreign tax credit allowed in the U.S. for each of the years? 2. What is the U.S. tax liability for each of the years? 3. In Year 3, how much excess foreign tax credit can Todd Corportation carry back?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transact Ions

Section: Chapter Questions

Problem 34P

See similar textbooks

	Year 1	Year 2	Year 3
Foreign Source Income	74000	94000	104000
Foreign Taxes Paid	14800	21620	23920
U.S. tax before FTC	15540	19740	21840

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