Answer:
The amount of the foreign tax credit is $52,500
Explanation:
Given:
Income from Norway = $55,000
Income tax in Norway = 40%
Income from France = $45,000
Income tax in France = 30%
Taxable income from U.S. sources = $200,000
U.S. tax liability = $105,000
Tax paid in Norway = $55,000 × 40% = $22,000
Tax paid in France = $45,000 × 30% = $13,500
Foreign tax credit = (Net foreign income ÷ U.S. taxable income) × U.S. tax liability
= ($100,000 ÷ $200,000) × $105,000
= $52,500
