Use the following information to answer problems 16-19 Sigma, Inc., a Delaware Corporation, has subsidiaries located in the Ukraine and in Korea, with data as follows: Ukraine Korea $2,500,000 United States Earnings before taxes Corporate Income Tax Rate Dividend Withholding Tax Rate $2,000,000 40% 26% 35% 10% 5% 0% What is the minimum effective tax rate that Sigma can achieve on its foreign-sourced income? 16 0% 26% 35% 40% a b C The additional U.S. taxes due on the repatriation of income from the Ukraine to the United States, alone, assuming a 50% payout rate, is excess foreign tax credits of $110,000. additional U.S. taxes due of $97,000. additional U.S. taxes due of $36,500. excess foreign tax credits of $18,500. 17 a b C d How much in additional U.S. taxes would be due if Sigma averaged the tax credits and liabilities of the two foreign units, assuming a 50% payout rate from each? $0 18 $2,500 $3,750 $13,750 C d If Sigma set the payout rate from the Ukraine subsidiary at 25%, how should Sigma set the payout rate of the Korean subsidiary (approximately) to more efficiently manage its total foreign tax bill? 24.50% b 19 a 28.50% 42.60% C 82.30% d Assume a Spanish affiliate repatriates as dividends one-quarter of the after-tax profits it earns (ie, dividend payout ratio 25%). If the income tax rate in Spain is 30 % and there is a withholding tax of 15%, what is the effect on the parent company's US tax bill if the Spanish affiliate had pre-tax profit equal to $1,000,000 USD? Assume the US Tax rate is 20 35% $12,500 additional taxes owed $12,500 tax credit received $13,750 additional taxes owed $13,750 tax credit received a b