The following information pertains to Raubolt Corporation's operations for the current year:
Worldwide taxable income: $300,000
US source taxable income: $180,000
US income tax before foreign tax credit: $96,000
General category income: $90,000
Foreign income tax paid on general category income: $32,000
Foreign passive category income: $30,000
Foreign income tax paid on passive category income: $7,500
What amount of foreign tax credit may Raubolt Corporation claim for the current year?
a. $32,000
b. $36,300
c. $38,400
d. $39,500
Answer: B
Tax
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