Trapezoid, Inc., had worldwide taxable income in the current year of...
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Trapezoid, Inc., had worldwide taxable income in the current year of $2.5 million. Eighty percent of this was earned within the United States, with the remainder being earned in Laos. Trapezoid paid $10,000 in foreign income taxes on $200,000 of nonbusiness-related interest earned in Laos. Trapezoid also paid $150,000 in taxes to Laos on foreign source business Income of $425,000. Trapezoid's tentative U.S. income tax was $525,000. What is Trapezoid's Foreign Tax Credit in the current year? A. $160,000 B. $131,250 C. $99,250 D. $89,250
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