Determining foreign tax credit and total tax liability

Reference no: EM13140835

Suppose a US corporation (tax rate 34%) with $2,500,000 of domestic income sets up a branch in Japan earning $800,000, where the tax rate is 50%. Also, assume I earned another $100,000 in interest revenue in a country with a 10% income tax rate...like Ireland. Using the outline below, calculate the foreign tax credit and total tax liability for the corporation.

Income
US Sourced (here need to fill out )
Japanese Branch
Irish Branch
Tax Base
US Tax Rate
US Tax
Foreign Taxes Paid
Foreign Tax Credit
US Tax Liability
Total Income Tax Liability

Reference no: EM13140835

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