Jim has foreign income. he earns $26,000 from country a which taxes the income at a 20 percent rate. he also has income from country b of $18,000. country b taxes the $18,000 at a 10 percent rate. his us taxable income is $90,000, which includes the foreign income. his us income tax on all sources of income before credits is $19,000. what is his foreign tax credit?

$7000

Explanation:

Given that,

Earns from country A (x) = $26,000

Income Tax rate in country A = 20 percent

Earns from country B (y) = $18,000

Income Tax rate in country B = 10 percent

Jim's US taxable income (I) = $90,000

His US income tax on all sources of income before credits (F) = $19,000

Foreign tax credit :

⇒ Earns from country A × Income Tax rate in country A + Earns from country B × Income Tax rate in country B

= 26,000 × 20% + 18,000 × 10%

= $7000

or

⇒

=

= $9288.8

Therefore, foreign tax credit is lesser of the above, i.e $7000.

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

answer$225.00;