Minden Corporation€™s records show the following results for its first three years of operations.

In year 4, Minden generated $2 million taxable income ($900,000 of which was foreign source) and paid $370,000 foreign income tax. Assume Minden€™s foreign source income does not qualify as FDII.

a. Compute Minden€™s U.S. tax for years 1, 2, and 3.

b. Compute Minden€™s U.S. tax for year 4.

c. Compute the refund generated by the carryback of the year 4 excess credit.

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Year 2 Year 3 Year 1 $ 800,000 $180,000 $350,000 U.S. source income Foreign source income 92,000 680,000 500,000 $272,000 $850,000 $1,480,000 Taxable income $ 81,600 $ 17,000 $ 52,000 Foreign tax paid %24