Problem 7-21 (Algorithmic) Foreign Tax Credit (LO 7.6) Martha and Lew are married taxpayers with $700 of foreign tax withholding from dividends in a mutual fund. They have enough foreign income from...

Extracted text: Problem 7-21 (Algorithmic) Foreign Tax Credit (LO 7.6) Martha and Lew are married taxpayers with $700 of foreign tax withholding from dividends in a mutual fund. They have enough foreign income from the mutual fund to claim the full $700 as a foreign tax credit. Their tax bracket is 35 percent and they itemize deductions. Should they claim the foreign tax credit or a deduction for foreign taxes on their Schedule A? If required, round your answer to the nearest dollar. The foreign tax deduction will result in a $ tax benefit where as claiming the foreign tax credit yields a $ tax benefit. Therefore, the taxpayers should claim the foreign tax credit. deduct the foreign taxes.