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Drake Inc., a U.S. corporation, operates a branch sales office in Turkey. During the current year,...

Drake Inc., a U.S. corporation, operates a branch sales office in Turkey. During the current year, Drake earned $500,000 in taxable income from U.S. sources and $100,000 in taxable income from sources in Turkey. Drake paid $40,000 in income taxes to Turkey. All of the income characterized as general limitation income. Compute Drake’s U.S. income tax liability after consideration of any foreign tax credit. Drake’s U.S. tax rate is 35%

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USA Turkes 500 00o $ 100,00 o Tax paid Tox xte 1o,000 35 7 Cart on of foreign tex czedit -creditable [oreign income taxer ニ $..Credit Lesser -- o 2 Druke on-com exces Cette of 500 4a00 350s back one owand lo yea0. ake Inc.s US Tax liabili ncorme Tax

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