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Spartan Corporation, a U . S . corporation, reported $ 3 million of pretax Income from its business operations In Spartanla, which were conducted through

Spartan Corporation, a U.S. corporation, reported $3 million of pretax Income from its business operations
In Spartanla, which were conducted through a forelgn branch. Spartanla taxes branch Income at 15 percent,
and the United States taxes corporate Income at 21 percent.
Requlred:
What would be the total tax on the $3 million of branch profits?
c. Assume the United States allows U.S. corporations to claim a deduction for foreign Income taxes. What
would be the total tax on the $3 million of branch profits?
d-1. Assume the United States allows U.S. corporations to claim a credit for foreign Income taxes pald on
foreIgn source Income. What would be the total tax on the $3 million of branch profits?
d-2. Assume the United States allows U.S. corporations to clalm a credit for foreIgn Income taxes pald on
foreIgn source Income. What would be your answer If Spartanla taxed branch profits at 30 percent?
(For all requirements, enter your answers In dollars and not In milllons of dollars.)
Answer is complete but not entirely correct.
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