A US firms foreign subsidiary has $100,000 of before tax foreign income that they wont remit. The host country has a corporate income tax rate of 5% and the U.S. has a corporate income tax rate of 35%. There is no withholding tax on dividends remitted to U.S. investors. What is the total amount of income taxes the subsidiary will pay to their host country, and how much will they pay in U.S income taxes on the foreign earned income?

(Assume the US operates on a worldwide approach with a foreign tax credit system; while the subsidiary operates with a territorial tax approach.)