Blue Company has a foreign branch that earns income before income taxes of $500,000. Income taxes paid to the foreign government are $150,000 or 30%. Sales and other taxes paid to the foreign government are $100,000. Blue Company must include the $500,000 of foreign branch income in determining its home country taxable income. In determining its taxable income, Blue can choose between taking a deduction for all foreign taxes paid or a credit only for foreign income taxes paid. The corporate income tax rate in Blue's' home country is 40%. 1. Determine whether Blue would be better off taking a deduction of a credit for foreign taxes paid (FTC). 2. If foreign tax rate increased from 30% to 50%, how would it change your answer? 3. If foreign tax rate decreased from 30% to 10%, how would it change your answer? 4. If parent country's tax rate decreased from 40% to 20%, how would it change your answer? 5. If local taxes were $250,000, how would it change your