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There is a resident company E situated in State A. Its gross income is $250,0 00, including $180,000 earned from State A, and $70,000 from

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There is a resident company E situated in State A. Its gross income is $250,0 00, including $180,000 earned from State A, and $70,000 from State B in so me taxable year. E pays a foreign income tax to B state the income tax ra te in State B is 25% and its income tax rate in State A is 35%. Required: (1) calculate how much income tax E should pay without any relief meth ods (2) Calculate how much income tax E should pay with deduction metho d. (3) Calculate how much income tax E should pay with credit method. (4) Assume that the income tax rate in State Bis 35%, the income tax rat e in State A is 25%, calculate how much income tax E should pay wit h credit method

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