Elmo Inc. is a U.S. corporation with a branch office in foreign country Z. During the current year, Elmo had $465,000 of U.S. source income and $30,000 of foreign source income from Z, on which Elmo paid $14,000 of country Z income tax.

a. Calculate Elmos U.S. tax liability before foreign tax credit,

maximum foreign tax credit allowable, and

net U.S. tax liability after foreign tax credit.

b. If Elmo had paid only $3,000 of country Z income tax,

calculate Elmos foreign tax credit allowable and

net U.S. tax liability after foreign tax credit.