The Duncan Corporation, a domestic corporation, owns 70 percent of Wildflower, a foreign corporation. Duncans pro rata share of post-1986 undistributed U.S. earnings is $2,500,000 of which $1,000,000 is cash or cash equivalents.

How much will Duncan pay in tax in the current year? $

Assume that Duncan elects to pay its tax liability over 8 years, what amount will it owe each year?

Years 1 to 5	$
Year 6	$
Year 7	$
Year 8	$