Reference no: EM132781337

The Alpinian branch of Rawl Corporation has foreign source income of $75,000 in Year 1 $100,000 in Year 2 $100,000 and Year 3

The corporate tax rate in the Alpinian Republic in

In Year 1 was 11 percent

In Year 2, the Alpinian Republic increased its corporate income tax rate to 15 percent.

In Year 3, the Alpinian Republic increased its corporate tax rate to 22 percent.

The U.S. corporate tax rate in each year is 21 percent.

Instruction:

Problem 1: Calculate Rawl's

a) foreign tax paid

b) U.S. tax before foreign tax credit (FTC)

c) foreign tax credit

d) U.S. tax after FTC

e) excess foreign tax credit for Year 1, Year 2, and Year 3