The following information pertains to Wald Corp.’s operations for the year ended December 31, 2007:

Worldwide taxable income

$300,000

US source taxable income

180,000

US income tax before foreign tax credit

96,000

Foreign nonbusiness-related interest earned

30,000

Foreign income taxes paid on nonbusiness-related interest earned

12,000

Other foreign source taxable income

90,000

Foreign income taxes paid on other foreign source taxable income

27,000

What amount of foreign tax credit may Wald claim for 2007?

  1. $28,800
  2. $36,600
  3. $38,400
  4. $39,000