Allowable foreign tax credits

Reference no: EM13121096

Mark, Inc., a U.S. corporation, operates an unincorporated branch manufacturing operation in Germany. Mark, Inc., reports $100,000 of taxable income from the German branch on its U.S. tax return along with $400,000 of taxable income from its U.S. operations. Mark paid $40,000 in German income taxes related to the $100,000 in branch income. Assuming a U.S. tax rate of 35%, what is Mark's U.S. tax liability after any allowable foreign tax credits?

a. $0.

b. $175,000.

c. $135,000.

d. $140,000.

e. Some other amount.

Reference no: EM13121096

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