ABC Corp. has a foreign branch in the country of XXX that earned the equivalent of $1,000,000. Income taxes in XXX are 20%. Property, sales and other taxes paid in XXX were the equivalent of $250,000. ABC must include the foreign earned income in determine its home country taxable income. The corporate tax rate in ABC's home country is 35%.

1. How much additional tax will ABC pay in its home country on it foreign earned income if it uses the foreign tax credit method ?

2. How much additional tax will ABC pay in its home country on it foreign earned income if it uses the deduction method ?