Which of the Following Statements Regarding Income Sourcing Is Correct

Multiple Choice

Which of the following statements regarding income sourcing is correct?

A) Everything else being equal, a larger foreign-source income decreases the foreign tax credit limitation for U.S. persons.
B) Everything else being equal, a larger foreign-source income increases the foreign tax credit limitation for U.S. persons.
C) Everything else being equal, a larger U.S.-source income increases the foreign tax credit limitation for U.S. persons.
D) Everything else being equal, changing foreign-source income does not change the foreign tax credit limitation for U.S. persons.