Hannah and Daughters is a United States-based graphic design firm. It has a subsidiary in Montenegro that generates foreign EBIT of

34 million. The firm has tangible assets overseas with a book value of 18.7 million. Hannah pays a 8% tax rate in Montenegro. If the U.S. corporate tax rate is

21%, and the current exchange rate is $1.24/, how much U.S. tax does Hannah and Daughters owe on the income from its subsidiary? What is its effective marginal tax rate on an extra euro of income earned abroad?