15. QuAppelle Enterprises, a Canadian import-export trading firm, is considering its international tax situation. Canadian tax law requires Canadian corporations to pay taxes on their foreign earnings at the same rate as profits earned in Canada; this rate is currently 35%. However, a full tax credit is given for the foreign taxes paid up to the amount of the Canadian tax liability. Qu'Appelle has major operations in Poland where the tax rate is 20%, and in Sweden, where the tax rate is 60%. The profits which are fully and immediately repatriated, and foreign taxes paid for the current year are shown here Earnings before interest and taxes (EBIT) Host country taxes paid Earnings before interest and after taxes Poland 80 million CAD 16 million CAD 64 million CAD Sweden 100 million CAD 60 million CAD 40 million CAD a. What is the Canadian tax liability on the earnings from the Polish subsidiary assuming the Swedish subsidiary did not exist? b. What is the Canadian tax liability on the earnings from the Swedish subsidiary assuming the Polish subsidiary did not exist