Dear @AmyC, Your line of troubleshooting is correct, except where you state that "Line 3d - manually enter the portion attributable to country A of gross foreign source income- after FEIE/FHE."
Deductions not definitely related to US or foreign source income must be apportioned with the ratio of FSI to WWI before FEIE&FHE amounts are excluded, as clearly stated in the Form 1116 Instructions:
"Line 3d. Enter your gross foreign source income from the category you checked above Part I of this Form 1116. Include any foreign earned income you have excluded on Form 2555 but don’t include any other exempt income" (Form 1116 Instructions, p. 17).
Lumping all countries with FEI into a single "VARIOUS" country on Form 1116 is a solution and would likely pass e-filing, but that's a highly debatable practice.
