Calculate the net funds available to the parent

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Tax credits A U.S.-based MNC has a foreign subsidiary that earns $250,000 before local taxes, with all the after-tax funds to be available to the parent in the form of dividends. The applicable taxes consist of a 33% foreign income tax rate, a foreign dividend withholding tax rate of 9%, and a U.S. tax rate of 34%. Calculate the net funds available to the parent MNC if:

a. Foreign taxes can be applied as a credit against the MNC's U.S. tax liability.

b. No tax credits are allowed. Please show the work.

Reference no: EM131251483

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