1. FOR 2020, USCO HAS TAXABLE INCOME (“TI”) FROM ITS US OPERATIONS OF $300,000 BUT USCO’S NEW BRANCH OPERATION IN COUNTRY X GENERATES A START UP LOSS OF ($200,000). USCO’S US TAX RATE IS 21% AND COUNTRY X HAS A TAX RATE OF 30%.

HOW MUCH WILL USCO PAY IN US INCOME TAX IN 2020? (YOU MUST DETERMINE THE TAX)

2. FOR 2021, USCO’S US OPERATIONS AGAIN GENERATE TI OF $300,000 WHILE THE BRANCH IN COUNTRY X TURNS THINGS AROUND AND HAS TI OF $200,000. IF NOT FOR THE OVERALLFOREIGN LOSS RECAPTURE RULE, WHAT WOULD USCO PAY TO THE US IN US INCOME TAX FOR 2021? (YOU MUST DETERMINE THE TAX)

3. AFTER APPLYING THE OVERALL FOREIGN LOSS RECAPTURE RULE, HOW MUCH WILL USCO PAY TO THE US IN TAX FOR 2021? (YOU MUST DETERMINE THE TAX)?