Tree Inc. is a branch of Todd Corporation located in Foreignland. The corporate tax rate in Foreignland is 20% in year 1, and 23% in years 2 and 3. The corporate tax rate in the U.S. is 21% for all years.

Below is additional information about different amounts:

	Year 1	Year 2	Year 3
Foreign Source Income	80000	100000	110000
Foreign Taxes Paid	16000	23000	25300
U.S. tax before FTC	16800	21000	23100

Questions:

1. What is the foreign tax credit allowed in the U.S. for each of the years?

2. What is the U.S. tax liability for each of the years?

3. In Year 3, how much excess foreign tax credit can Todd Corportation carry back?