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.