Paton Corporation, a U.S. corporation, owns 100 percent of the stock of Tappan Ltd, a British corporation, and 100 percent of the stock of Monroe N.V., a Dutch corporation. Monroe has post-1986 undistributed earnings of 750 and post-1986 foreign income taxes of $500. Tappan has post-1986 undistributed earnings of 1,000 and post-1986 foreign income taxes of $250. During the current year, Tappan paid Paton a dividend of 600, and Monroe paid Paton a dividend of 600. The dividends were exempt from withholding tax under the U.S.-UK and U.S.-Netherlands income tax treaties. The exchange rates are as follows: 1:$1.50 and 1:$2.00. Assume the U.S. tax rate is 35 percent. (Enter your answers in dollars, with your final answers rounded to the nearest whole dollar amount. Do not round intermediate calculations.)

a. Compute Patons deemed paid credit on the dividends it received from Tappan and Monroe.

deemed paid credit?

Monroe

Tappen