Moto Inc. pays state income tax at a 6 percent rate and federal income tax at a 34 per-cent rate. Moto recently engaged in a transaction in Country N, which levied a $97,300 tax on the transaction. This year, Moto generated $2.738 million net income before consideration of any tax. Compute Moto’s total tax burden (federal, state, and foreign) assuming that:
a. The tax paid to Country N is deductible for both state and federal tax purposes.
b. The tax paid to Country N is not deductible for state tax purposes but is deductible for federal tax purposes.
c. The tax paid to Country N is not deductible for either state or federal tax purposes.