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 $118,500: $94,400 from U.S. operations and $24,100 from the Espania branch. Espania taxes corporate income at a rate of 30 percent.

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?