B is corrent. The requirement is to determine how taxes paid by an individual to a foreign country may be treated. Foreign income taxes paid by an individual may be deducted as an itemized deduction (not subject to the 2% floor), or may be subtracted as a credit against federal income taxes due.
A is incorrect because foreign taxes can be deducted as an itemized deduction, but would not be subject to the 2% floor.
C is incorrect because foreign taxes can be deducted as an itemized deduction.
D is incorrect because foreign taxes can be deducted as an itemized deduction, but are not an adjustment to gross income in arriving at adjusted gross income.
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