outlets throughout the southeastern and northeastern regions of the United States Gamboa's two Central American subsidiaries are in Belize and Costa Rica. concern is tax averaging for foreign tax liabilities ansing from the two Central American subsidiaries US corporate income tax rate is $35\%$ averaged the tax credits$/$liabilities of the two units?

b$.$ Keeping the payout rate from the Belize subsidiary at $60\%,$ how should Maria change the payout rate of the Costa Rican subsidiary in order to most efficiently manage her total foreign tax bill?

c$.$ What is the minimum effective tax rate that Mana can achieve on her foreign$-$sourced income?

$\backslash$table$[[$Subsidiary Income Statement,,Belize,Costa Rica,Combined$],[$Earnings before taxes,$$,1,000,000,,],[$Less corporate income taxes,$-,,,],[$Net income,$$,,,],[$Distributed earnings,,,,$],[$Less withholding taxes on dividends,,,,$],[$Net dividend remitted to U S parent,,,,$],[$U$.$S$.$ Tax Calculation,,,,$],[$Net dividend remitted,$$,,,],[$Withholding income taxes,,,,$],[$Proportion of foreign income taxes,,,,$],[$Grossed$-$up dmidend,$5,,,],[$Theoretical U$.$S tax liability,$$,,,],[$Foreign tax credits,$$,,,],[$Additional U S tax due,,,,$],[$Excess foreign tax credits,$5,,,]]$

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[,$Belize,Costa Rica$],[$Earnings before taxes,$$1,000,000,$$$1,600,000$