34. LO.1, 5 Indeco, a U.s. C corporation, operates Grange, a sales branch in Staccato. Indeco's U.S. corporate marginal tax rte is 21%; it is 15% for Staccato. Grange's pretax profit for the year is $1 million. There is no income tax treaty between the United States and Staccato. Staccato's currency is the U.S. dollar. Com- pute Indeco's combined U.S. and foreign income tax on the Grange profits under each of the following assumptions. Staccato Combined Income Tax Income Tax Tax Liability U.S. a. U.S. income tax law allows no deduction or b. U.S. Income tax law allows only a deduction c. U.S. income tax law allows only an exclusion d. U.S. income tax law allows only a credit for the e. U.S. income tax law allows only a credit for the credit for foreign income taxes paid for foreign income taxes paid. of foreign branch profits. full amount of foreign income taxes paid. full amount of foreign income taxes paid. The applicable Staccato tax rate is now 30%. f. 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 Stac- cato tax rate is now 30%