Question

Gina has $39,000 total taxable income, which includes $6,000 of taxable income from Argentina. She paid $1,200 in foreign income taxes and her U.S. tax liability is $3,610. Gina's foreign tax credit is: (Do not round interim calculations)

Answer 1

the foreign tax credit is $1,200

Step-by-step explanation:

Given that

Total taxable income = $39,000 that involves $6,000 income generated from

Argentina

Other than this she paid $1,200 for the income tax occurs in foreign state

And, her U.S tax liability is $3,610

Based on the above information, her foreign tax credit should be equivalent to the amount of the foreign income taxes

Therefore the foreign tax credit is $1,200