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In 2024, MSB anticipates that that it will have $30M M of...

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Accounting

In 2024, MSB anticipates that that it will have $30M M of US source pre-tax income. MSB
anticipates that TNB will have $10MM of Canadian pre-tax income, which is subject to a
30% tax rate. The US tax rate is 21%.
a. How much taxable income will MSB have to report on its US tax return?
b. How much US tax, after considering Canadian foreign tax credits, will MSB have
to pay?
i. What will MSB's effective tax rate be (i.e., MSB's worldwide taxes divided
by worldwide pretax income)?
c. Assume now that MSB has expanded to London, England (i.e., the United
Kingdom). MSB has acquired another bank - "London National Bank" (or "LNB").
MSB anticipates in 2024 that LNB will have $20 MM of pre-tax income subject to
a 15% UK tax rate.
i. How much US tax, after considering foreign tax credits, will MSB have to
pay?
What will MSB's effective tax rate be?
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