Using the structure for calculating LiS. corporate taxes for foreign-sourced income shown in Exhibit 17.3, assume a foreign subsidiary has \(\$ 2,750,000\) in gross carnings, LiS , and forcign corporate tax rates are \(35 \%\) and \(30 \%\), respectively, and foreign withholding taxes on dividends paid to foreign residents in the United States are \(15 \%\).

a. What is the total tax payment, foreign and domestic combined, on this income:

b. What is the effective tax rate paid on this income by the U.S.-based company?

c. What would be the total tax payment and effective tax rate if the foreign corporate tax rate was \(45 \%\) and there were no withholding taxes on dividends: