Questions on tax planning - Credit Method

CFA Level III
#1

Q: Using the credit method and assuming an individual is taxed on foreign income at a rate of 50% and their home-country tax rate is 40%, what percentage of taxes would they pay to their home-country?

Firstly, what is your ans and why?

Secondly, in this question, “foreign country” means “source country” and “home country” means “residence country country”? I’m a bit confused…

#2

I would say the answer is 0% taxes paid to home country. My reasoning is since by using the credit method you take the max of source and resident tax, in this case that is 50% foreign income. So you will pay 50% in taxes to foreign country and 0% to home country.

I suggest to read the CFA curriculum on this topic if you need clarification.