Hannah and Daughters is a United States-based graphic design firm. It has a subsidiary in Montenegro that generates foreign EBIT of 30 million euros. The firm has tangible assets overseas with a book value of 18.2 million euros. Hannah pays a 9% tax rate in Montenegro. If the U.S. corporate tax rate is 21%, and the current exchange rate is $1.2/euro, how much U.S.
tax does Hannah and Daughters owe on the income from its subsidiary? What is its effective marginal tax rate on an extra euro of income earned abroad?