Source of income              Taxable income before any           foreign income                                               foreign tax credit                        tax paid Philippine                                  480,000                                    - Hongkong                                 192,000                                45,000 China                                          96,000                                 30,000 total                                          768,000                                 75,000 How much is the income tax payable of ABC assuming that foreign income taxes are claimed as tax credit?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 7DQ: Can any nonrefundable credits, other than the foreign tax credit, reduce the regular income tax...
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Source of income              Taxable income before any           foreign income
                                              foreign tax credit                        tax paid
Philippine                                  480,000                                    -
Hongkong                                 192,000                                45,000
China                                          96,000                                 30,000
total                                          768,000                                 75,000

How much is the income tax payable of ABC assuming that foreign income taxes are claimed as tax credit?

 

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