abc's subsidiary in z declares a 40 percent dividend: z's withholding tax on dividends is 5 percent. both the branch and the distribution facility, which is wholly owned, retain all earnings. the distribution earnings are considered to be foreign-based company sales income. what is abc's final u.s. tax liability?

Country United states Y Z Type of operation Parent Branch Distribution 100%-owned Gross earnings 500,000 (10,000) 120,000 400,000 Income tax rate 40% 25% 5% 45%