Sombrero Corporation, a U.S. corporation, operates through a branch in Espania. Management projects that the companys pretax income in the next taxable year will be $132,500: $108,800 from U.S. operations and $23,700 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.

Excess foreign tax credit ___

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?

Income ___