Question
The Alpinian branch of Rawl Corporation is has foreign source income of $75,000, $100,000, and $100,000 in Year 1, Year 2, and Year 3, respectively.
The Alpinian branch of Rawl Corporation is has foreign source income of $75,000, $100,000, and $100,000 in Year 1, Year 2, and Year 3, respectively. The corporate tax rate in the Alpinian Republic in Year 1 was 11 percent. In Year 2, the Alpinian Republic increased its corporate income tax rate to 15 percent. In Year 3, the Alpinian Republic increased its corporate tax rate to 22 percent. The U.S. corporate tax rate in each year is 21 percent.
Instruction (round up all answers to 1 decimal points): Calculate Rawl's a) foreign tax paid, b) U.S. tax before foreign tax credit (FTC), c) foreign tax credit, d) U.S. tax after FTC, and e) excess foreign tax credit for Year 1, Year 2, and Year 3.
I am stuck in trying to figure out how to calculate c, d and e for Year 1, Year 2 and Year 3
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