Dave is a U.S. citizen who works in a foreign country for a few months, earning $20,000 U.S.
He pays $5,000 in tax to the foreign country.
He earns a total of $80,000 subject to U.S. tax and pays $24,000 in U.S. tax.
What is the amount of the allowable foreign income tax credit that can be claimed by Dave?
a. $5,000
b. $6,000
c. $24,000
d. None of the above