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Sombrero Corporation, a US. corporation, operates through a branch in Espania. Management projects that the compary's pretax ncome in the next taxable year will be

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Sombrero Corporation, a US. corporation, operates through a branch in Espania. Management projects that the compary's pretax ncome in the next taxable year will be $113,500:$87,200 from US. operations and $26,300 from the Espania branch. Espania taxes corporate income at a rate of 30 percent. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. Required: a. If management's projections are accurate, what will be Sombrero's excess foreign tax credit in the next taxable year? Assume all of the income is foreign branch income. b. Management plans to establish a second branch in italia. Italia taxes corporate income at a rate of 10 percent. What amount of income will the branch in Italia have to generate to eliminate the excess credit generated by the branch in Espania? Complete this question by entering your answers in the tabs below. If management's projections are accurate, what will be Sombrero's excens foreign tax credit in the next taxable year? Assume afl of thit income is foreign branch income. Sombrero Corporation, a U.S. corporation, operates through a branch in Espania. Management projects that the company's pretax income in the next taxable year will be $113,500:$87,200 from U.S. operations and $26,300 from the Espania branch. Espania taxes corporate income at a rate of 30 percent Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. Required: a. If management's projections are accurate, what will be Sombrero's excess foreign tax credit in the next taxable year? Assume all of the income is foreign branch income. b. Management plans to establish a second branch in italia. Italia taxes corporate income at a rate of 10 percent What amount of income will the branch in Italia have to generate to eliminate the excess credit generated by the branch in Espania? Complete this question by entering your answers in the tabs below. Management plans to establish a second branch in ftalla, Italla taxes corporate income at a rate of 10 percent, What amount of income will the branch in Italia have to generate to eliminate the excess credit generated by the branch in Espania

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