What is columbia foreign tax credit

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Question: Columbia, Inc., a U.S. corporation, receives a $150,000 foreign source cash dividend from Starke, Ltd., a foreign corporation. Columbia owns 15% of Starke. Starke's E & P is $2 million and it has paid foreign taxes of $750,000 attributable to that E & P. Columbia's U.S. source taxable income is $1,000,000 and its federal income tax rate is 35%. What is Columbia's foreign tax credit related to the Starke dividend?

Reference no: EM131884447

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What is columbia foreign tax credit : Columbia, Inc., a U.S. corporation, receives a $150,000 foreign source cash dividend from Starke, Ltd., a foreign corporation. Columbia owns 15% of Starke.
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