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	79000	99000	109000
Foreign Taxes Paid	15800	22770	25070
U.S. tax before FTC	16590	20790	22890

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?