R a firm residing in A, a country that uses the following progressive schedule Taxable income 0 0 10,000 2,000 30,000 8,000 60,000 20,000 We know that R has the following sources of income: Income from Business Activities in country X Dividends from country X Tax Income from Business Activities in country Z Income earned in A (residence) Income 40,000 20,000 50,000 Rest of Taxable income 10,000 20,000 30,000 onwards Foreign tax paid 15,000 3,000 20,000 Marginal Tax Rate 20% 30% 40% 50% 60,000 Calculate the taxes to be paid by R, in country A and in the other countries (X and Z), using the credit method under country-by-country and item-by-item limitation. Taxes paid in Country A Country X Country Z TOTAL Credit Method Country-by-country limit and item-by-item limit X X X X R a firm residing in A, a country that uses the following progressive schedule Taxable income 0 0 10,000 2,000 30,000 8,000 60,000 20,000 We know that R has the following sources of income: Income from Business Activities in country X Dividends from country X Tax Income from Business Activities in country Z Income earned in A (residence) Income 40,000 20,000 50,000 Rest of Taxable income 10,000 20,000 30,000 onwards Foreign tax paid 15,000 3,000 20,000 Marginal Tax Rate 20% 30% 40% 50% 60,000 Calculate the taxes to be paid by R, in country A and in the other countries (X and Z), using the credit method under country-by-country and item-by-item limitation. Taxes paid in Country A Country X Country Z TOTAL Credit Method Country-by-country limit and item-by-item limit X X X X