Problem 25-31 (LO. 5) Dunne, Inc., a U.S. corporation, earned $500,000 in total taxable income, including $50,000 in foreign-source taxable income from its branch manufacturing operations in Brazil and $20,000 in foreign-source income from interest earned on bonds issued by Dutch corporations. Dunne paid $25,000 in Brazilian income taxes and $3,000 in Dutch income taxes. Dunne's U.S. tax rate is 21%. a. The FTC limit related to the Brazilian manufacturing branch is $ 10,500 and of this amount, Dunne is allowed $ 94,500 X. b. The FTC limit related to the Dutch bonds is $ 4,200 and of this amount Dunne is allowed $ 20,000 X. c. Dunne's U.S. tax liability (after any available FTC) is $ 90,300 X. d. Dunne has a $ 10,500 X carryforward in the foreign branch basket