Bay City Rollers Inc., a U.S. company, has a branch located in Sao Antonio and another in the Bahian Islands. The foreign source income from the Sao Antonio branch is $150,000, and the foreign source income from the Bahian Island branch is $225,000. The corporate tax rates in Sao Antonio, the Bahian Islands, and the United States are 30 percent, 24 percent, and 35 percent, respectively.
Required:
Determine Bay City Rollers' (a) U.S. foreign tax credit and (b) net U.S. tax liability related to these foreign sources of income.