CCC, a U.S. company has a foreign branch which earns income of $150,000 and paid foreign income tax of 18,000 (12%) U.S. tax rate = 21%

The foreign branch also paid $5,000 in withholding taxes, $1,500 in value-added tax and $2,000 in sales tax.

Compute the U.S. tax liability using a tax credit (Hint: credits are only for income-based taxes) or a tax deduction. Use separate columns for each alternative. SHOW AND LABEL ALL COMPUTATIONS.