The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $200,000 in taxes to Country Y. The subsidiary paid a dividend to the U.S. patent of $150,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%?

a. $35,625

b. $0

c. $52,500

d. $32,500

a Japanese branch of a u.s. corporation paid $4,200,000 in taxes to the government of Japan on income it generated there. the corporation is subject to a 35% tax rate in the u.s. How much tax will be owed to the u.s. government on the $10,000,000 of Japanese branch income?

a. $4,200,000

b. $3,500,000

c. $0

d. $7,000,000