Windmill Corporation manufactures products in its plants in lowa, Canada, Ireland, and Australia. Windmill conducts its operations in

Canada through a $50$ percent$-$owned joint venture, CanCo. CanCo is treated as a corporation for U$.$S$.$ and Canadian tax purposes. An

unrelated Canadian investor owns the remaining $50$ percent. Windmill conducts its operations in Ireland through a wholly owned

subsidiary, IrishCo. IrishCo is a controlled foreign corporation for U$.$S$.$ tax purposes. Windmill conducts its operations in Australia

through a wholly owned hybrid entity, KiwiCo. KiwiCo is treated as a branch for U$.$S$.$ tax purposes and a corporation for Australian tax

purposes. Windmill also owns a $5$ percent interest in a Dutch corporation, TulipCo.

During $2023,$ Windmill reported the following foreign source income from its international operations and investments.

Note: CanCo and KiwiCo derive all of their earnings from active business operations.

Required:

a$.$ Classify the income received by Windmill into the appropriate FTC baskets.

b$.$ Windmill has $$1,250,000$ of U$.$S$.$ source gross income. Windmill also incurred SG&A of $$300,000$ that is apportioned between U$.$S$.$

and foreign source income based on the gross income in each basket. Assume KiwiCo's gross income is $$200,000.$ Compute the

FTC limitation for each basket of foreign source income.

Complete this question by entering your answers in the tabs below.

Classify the income received by Windmill into the appropriate FTC baskets.

Note: Leave no answer blank. Enter zero if applicable.