Ukraine: EBIT: $2,000,000, Corporate Income Tax Rate: 40%, Dividend Withholding Tax Rate: 10%, Korea: EBIT: $2,500,000, Corporate Income Tax Rate: 26%, Dividend Withholding Tax Rate: 5%, U.S: Corporate Income Tax Rate: 35%, Dividend Withholding Tax Rate: 0%.

How much in additional U.S. taxes would be due if BayArea averaged the tax credits and liabilities of the two foreign units, assuming a 50% payout rate from each? Answer should be $2,500

If BayArea set the payout rate from the Ukraine subsidiary at 25%, how should BayArea set the payout rate of the Korean subsidiary (approximately) to more efficiently manage its total foreign tax bill? Answer should be 24.5%

Please explain and show how you got the answers.