Santana Music is a U.S.-based MNC whose foreign subsidiary had pretax income of $58,000; all after-tax income is available in the form of dividends to the parent company. The local tax rate is 41%, he foreign dividend withholding tax rate is5.2%, and the U.S. tax rate is 32%.

Compare the net funds available to the parent corporation (a) if foreign taxes cannot be applied as a credit against the U.S. tax liability and (b) if they can.

The dividend available to be declared is ___ (Round to the nearest dollar.)

The dividends that Santana will actually receive is ___ (Round to the nearest dollar.)

(a)If foreign taxes cannot be applied against the U.S. tax liability, the net funds available to Santana is __ (Round to the nearest dollar.)

(b)If foreign taxes can be applied against the U.S. tax liability, the net funds available to Santana is __ (Round to the nearest dollar.)