Bismarck Corporation Has a Precredit U

Multiple Choice

Bismarck Corporation has a precredit U.S. tax of $210,000 on $1,000,000 of taxable income in the current year. Bismarck has $200,000 of foreign source taxable income characterized as foreign branch income and $50,000 of foreign source taxable income characterized as passive category income. Bismarck paid $80,000 of foreign income taxes on the foreign branch income and $10,000 of foreign income taxes on the passive category income. What amount of foreign tax credit (FTC) can Bismarck use on its current-year U.S. tax return and what is the amount of the carryforward, if any?

A) $90,000 FTC with $0 carryforward
B) $52,000 FTC with $0 carryforward
C) $52,000 FTC with $38,000 carryforward
D) $16,500 FTC with $73,500 carryforward