The U.S. a.income taxes U.S.corporate income earned abroad as though the income was earned in the...

The U.S.

a.income taxes U.S.corporate income earned abroad as though the income was earned in the U.S., ignoring foreign income tax paid.

b.tries to limit double taxation on U.S. corporate income earned abroad.

c.allows a deduction, not a credit, to U.S. corporations for tax paid to foreign countries.

d.taxes U.S. corporate income earned abroad at rates lower than the host country.

Expert Solution

Answer is option B

tries to limit double taxation on U.S. corporate income earned abroad.

double taxation can be avoided by using the foreign tax credit allowed.

ekkarill92 answered 2 years ago

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