Velocity, Inc., a foreign corporation, operates a U.S. branch. It reports the following tax results and other information for the year.

Pretax earnings effectively connected with a U.S. trade or business $900,000

U.S. corporate tax (at 34%) 306,000

Remittance to home office 400,000

Increase in U.S. net equity 194,000

a.Compute Velocity's dividend equivalent amount for the tax year.

Velocity's dividend equivalent amount is $

b.Determine Velocity's liability for the branch profits tax for the year.

The branch profits tax is $.