Trident Solar Technologies (TST) is the wholly-owned Taiwanese subsidiary of United Renewable Energy (URE) Inc., a U.S. firm. Last year, TST had $3,000,000 of taxable income and remitted 100% of the after-tax income to URE as dividends.

The corporate tax rate in Taiwan was 25%, and the foreign withholding tax rate on dividends was 10%. The corporate tax rate for the parent company in the U.S. was 30%. Calculate the tax liability and the excess foreign tax credit for URE, the U.S. parent company.

		The U.S. parent had no tax liability to the U.S. government, it was entitled to $25,000 excess foreign tax credit
		The U.S. parent had a tax liability of $75,000 to the U.S. government, it was not entitled to excess foreign tax credit
		The U.S. parent had a tax liability of $50,000 to the U.S. government, it was not entitled to excess foreign tax credit
		The U.S. parent had no tax liability to the U.S. government, it was entitled to $100,000 excess foreign tax credit
		The U.S. parent had no tax liability to the U.S. government, it was entitled to $75,000 excess foreign tax credit