(a.) For U.S. tax purposes, compute the U.S. branch’s dividend equivalent amount and branch profit tax for the current tax year. Assume that the United States does not have an income tax treaty with Country Y.

(b.) For U.S. tax purposes, what is the maximum interest expense deduction that may be taken by the U.S. branch for the current tax year? Does the payment or deduction of interest expense by the U.S. branch trigger a U.S. tax liability? If so, identify the type of tax and the amount.