18. LO.3 Crank, Inc., a U.S. corporation, operates a branch sales office in Ghana.

During the current year, Crank earned $200,000 in taxable income from U.S.

sources and $50,000 in taxable income from sources in Ghana. Crank paid $5,000 in income taxes to Ghana. All of the income is characterized as general operating income. Compute Crank’s U.S. income tax liability after consideration of any foreign tax credit. Crank’s U.S. tax rate is 21%.