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.
Crocker Corp.'s unused foreign tax credit:
a. Can be carried back two years and forward twenty years.
b. Can be carried back one year and forward ten years.
c. Can be carried back two years and forward five years.
d. Cannot be carried to other tax years
Answer: B
Tax
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