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Problem Materials 13.20 Foreign Tax Credit-Corporations. D, Inc. is a domestic corporation that owns 100% of E Inc. Assume F has no Subpart F income so that the controlled foreign corpora- tion rules do not apply. F had the following items of income and tax: 2013. Foreign E&P Income Taxes 2011. $50,000 $12,500 2012. 50,000 12,500 ...................... 40,000 10,000 2014. 60,000 15,000 $200,000 $50,000 F pays a $90,000 dividend at the end of 2014. Income taxes of $13,500 were with- held; therefore, D received $76,500. Calculate D's U.S. tax liability on this income before the foreign tax credit limitation. Assume a 34% tax rate. O cuboidianThe pretax income earned by a foreign cor- Total Problem Materials 13.20 Foreign Tax Credit-Corporations. D, Inc. is a domestic corporation that owns 100% of E Inc. Assume F has no Subpart F income so that the controlled foreign corpora- tion rules do not apply. F had the following items of income and tax: 2013. Foreign E&P Income Taxes 2011. $50,000 $12,500 2012. 50,000 12,500 ...................... 40,000 10,000 2014. 60,000 15,000 $200,000 $50,000 F pays a $90,000 dividend at the end of 2014. Income taxes of $13,500 were with- held; therefore, D received $76,500. Calculate D's U.S. tax liability on this income before the foreign tax credit limitation. Assume a 34% tax rate. O cuboidianThe pretax income earned by a foreign cor- Total

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