For the current year, Crocker Corp., a domestic corporation, has US taxable income of $700,000, which includes $100,000 from a foreign division. Crocker paid $40,000 of foreign income taxes on the income of the foreign division.
Assuming Crocker's US income tax for the current year before credit is $210,000, its maximum foreign tax credit for the current year is
a. $6,400
b. $30,000
c. $35,000
d. $40,000
Answer: B
Tax
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