34. Indeco, a U.S. C corporation, operates Grange, a sales branch in Staccato. Indeco's U.S corporate marginal tax rate is 21%; it is 15% for Staccato. Grange's pretax profit for the year is $1 million. There is no tax treaty between the United States and Staccato. Staccato's currency is the U.S dollar Compute Indeco's combined U.S and foreign income tax on the Grange profits under each of the following assumptions. Staccato Combined U.S Tax Liability Income Tax Income Tax U.S income tax law allows no deduction or credit for foreign income taxes paid U.S income tax law allows only a deduction for foreign income taxes paid U.S income tax law allows only an exclusion of foreign branch profits C. U.S income tax law allows only a credit for the full amount of foreign income taxes paid U.S income tax law allows only a credit for the full amount of foreign income taxes paid. The applicable staccato tax rate is not 30% U.S income tax law allows only a credit for the full amount of foreign income taxes paid, but limited currently to the corresponding tax on this income at U.S rates. The applicable Staccato tax rate is now 30% 34. Indeco, a U.S. C corporation, operates Grange, a sales branch in Staccato. Indeco's U.S corporate marginal tax rate is 21%; it is 15% for Staccato. Grange's pretax profit for the year is $1 million. There is no tax treaty between the United States and Staccato. Staccato's currency is the U.S dollar Compute Indeco's combined U.S and foreign income tax on the Grange profits under each of the following assumptions. Staccato Combined U.S Tax Liability Income Tax Income Tax U.S income tax law allows no deduction or credit for foreign income taxes paid U.S income tax law allows only a deduction for foreign income taxes paid U.S income tax law allows only an exclusion of foreign branch profits C. U.S income tax law allows only a credit for the full amount of foreign income taxes paid U.S income tax law allows only a credit for the full amount of foreign income taxes paid. The applicable staccato tax rate is not 30% U.S income tax law allows only a credit for the full amount of foreign income taxes paid, but limited currently to the corresponding tax on this income at U.S rates. The applicable Staccato tax rate is now 30%