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 88,000 108 ,000 118,000

Foreign Taxes Paid 17,600 24,840 27,140

US Tax before FTC 18,480 22,680 24,780

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

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

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