Elmwood, Inc., a domestic corporation, owns 15% of Correy, Ltd., a Hong Kong corporation. The remaining 85% of Correy is woned by Fortune Enterprises, a Canadian corporation. At the end of the current year, Correy has $400,000 in post-1986 undistributed E & P and $200,000 in foreign taxed related to this E & P. On the last day of the year, Correy pays a $40,000 dividend to Elmwood. Elmwood's taxable income before the dividend is $200,000.

Assume a 34% tax rate.

a. The deemed-paid foreign tax credit related to the $40,000 dividend paid by Correy to Elmwood is $____________

b. Elmwood's U.S tax liability before the FTC is $___________________

c. Elmwood's tax liability after any allowed FTC is $_____________________