Question 5 (25 marks) Artco Company, based in New York, has a branch located in Singapore that generated income before tax of 1,500,000 Singaporean dollars (SGD) in the current year. The tax rates in Singapore and U.S. is 17% and 21% respectively. The following exchange rates for the current year are: Average for the year December 31 US$ per SGD 0.75 0.76 Required: Calculate amount of U.S. taxable income in U.S. dollars related to the Singaporean branch. (2 marks) 2. Calculate amount of foreign tax credit allowed in U.S. dollars related to the Singaporean branch. (6 marks) 3. Which approach would make the company better off, deduction and credit approach? Support your answer with computation of the net U.S. tax liability related to the Singaporean branch. (13 marks) 4. Under U.S. tax law, what happens to excess foreign tax credit? (4 marks) Question 5 (25 marks) Artco Company, based in New York, has a branch located in Singapore that generated income before tax of 1,500,000 Singaporean dollars (SGD) in the current year. The tax rates in Singapore and U.S. is 17% and 21% respectively. The following exchange rates for the current year are: Average for the year December 31 US$ per SGD 0.75 0.76 Required: Calculate amount of U.S. taxable income in U.S. dollars related to the Singaporean branch. (2 marks) 2. Calculate amount of foreign tax credit allowed in U.S. dollars related to the Singaporean branch. (6 marks) 3. Which approach would make the company better off, deduction and credit approach? Support your answer with computation of the net U.S. tax liability related to the Singaporean branch. (13 marks) 4. Under U.S. tax law, what happens to excess foreign tax credit? (4 marks)