Unformatted text preview: Assume that the European country in which Blight operates imposes a 10% tax on investment income and a 40% tax on general limitation income. Further assume that the U.S. imposes a flat rate of 34% on all Blight’s income. Compute Blight’s U.S. taxable income, its pre-credit U.S. income tax, and its allowable foreign tax credit for each of the three years. See Code Sections 904(f)(5)(C) and 904(f)(1):...
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- Spring '11
- Taxes, Taxation in the United States, tax credit, general limitation income, Blight Corporation