Answer:
The amount of foreign tax credit may Wald claim for the current year is $36,600
Explanation:
For computing the claim for the foreign tax credit, we have to do the proportionate of U.S. income tax before foreign tax credit based on Foreign non-business-related interest, Other foreign sources taxable income to the Worldwide taxable income.
In mathematically,
Foreign tax credit based on non business-related which equals to
= (Foreign non business-related interest ÷ Worldwide taxable income) × U.S. income tax before foreign tax credit
= ($30,000 ÷ $300,000) × $96,000
= $9,600
Foreign tax credit based on Other foreign source taxable income which equals to
= (Other foreign source taxable income ÷ Worldwide taxable income) × U.S. income tax before foreign tax credit
= ($90,000 ÷ $300,000) × $96,000
= $28,800
The lower of $28,800 and $27,000 so, $27,000 as it includes the foreign income taxes paid
So, The total amount of foreign tax credit equals to
= $9,600 + $27,000
= $36,600
