Questions 10, 11, and 12 are based on the following information:

Information for Year 1, Year 2, and Year 3 for the Andean branch of Powell Corporation is presented in the following table. The corporate tax rate in the Andean Republic in Year 1 was 25 percent. In Year 2, the Andean Republic increased its corporate income tax rate to 29 percent. In Year 3, the Andean Republic increased its corporate tax rate to 36 percent. The U.S. corporate tax rate in each year is 35 percent.

	Year 1	Year 2	Year 3
Foreign source income	$75,000	$100,000	$100,000
Foreign taxes paid	18,750	29,000	36,000
U.S. tax before FTC	26,250	35,000	35,000

10. For Year 1, Year 2, and Year 3, what is the foreign tax credit allowed in the United States?

a. $7,500, $6,000, and $0.

b. $18,750, $29,000, and $36,000.

c. $75,000, $100,000, and $100,000.

d. $18,750, $29,000, and $35,000.

11. For Year 3, what is the net U.S. tax liability?

a. $35,000.

b. $0.

c. $1,000.

d. $6,000.

12. In Year 3, how much excess foreign tax credit can Powell carry back?

a. $7,500.

b. $6,000.

c. $1,000.

d. $0.

Please show how you computed the answers, thank you.