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Blunt, Inc., a U.S. corporation, earned $600,000 in total taxable income, including $80,000 in foreign source taxable income from its German Branch's manufacturing operations and

Blunt, Inc., a U.S. corporation, earned $600,000 in total taxable income, including $80,000 in foreign source taxable income from its German Branch's manufacturing operations and $30,000 in foreign source taxable income from its Swiss branch's engineering services operations. Blunt paid $32,000 in German income taxes and $1,800 in Swiss income taxes. Compute Blunt's U.S. tax liability after any available FTCs. Blunts marginal U.S. tax rate is 34%.

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