Calculate the total tax liability for a wholly-owned

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Question - When excess tax credits go unused, the foreign tax liability for a branch is greater than the corresponding U.S. tax liability when the foreign income tax rate is greater than the U.S. rate. Calculate the total tax liability for a wholly-owned subsidiary when excess tax credits cannot be used in a country given:

U.S. tax rate = 35 percent

Foreign tax rate = 39 percent

Withholding tax rate = 5 percent

Reference no: EM133034257

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