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! Required Information [The following information applles to the questions dlsplayed below.] ...

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Accounting

!
Required Information
[The following information applles to the questions dlsplayed below.]
Sombrero Corporation, a U.S. corporation, operates through a branch in Espania. Management projects that the company's pretax
income in the next taxable year will be $114,200 : $92,000 from U.S. operations and $22,200 from the Espania branch. Espanla
taxes corporate income at a rate of 30 percent.
Note: Do not round Intermedlate calculatlons. Round your final answer to the nearest whole dollar amount.
b. Management plans to establish a second branch in Italia. Italia taxes corporate income at a rate of 10 percent. What amount of Income will the
branch in Italia have to generate to eliminate the excess credit generated by the branch in Espania?
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