Henry, a U$.$S$.$ citizen, is engaged in numerous, diverse operations and pays U$.$S$.$ income tax at a flat rate of $37\%.$ Henry owns a Limited Liability Company $("$U$.$S$.$ LLC$"),$ a domestic disregarded entity for U$.$S$.$ tax purposes. U$.$S$.$ LLC purchases widgets for resale in the United States. Sales in the United States result in $$150,000$ of net U$.$S$.-$source taxable income. Henry projects that he could also earn approximately $$100,000$ of net foreign source taxable income in the United Kingdom $($the $"$U$.$K$."),$ where the U$.$K$.$ corporate income tax flat rate is $20\%$

To limit his personal liability $($widgets being arvery dangerous product$),$ Henry forms a private limited company in the U$.$K$.("$U$.$K$.$ PLC$")$ which is a wholly$-$owned subsidiary of U$.$S$.$ LLC$.$ Henry $($via the U$.$S$.$ LLC$)$ has the ability to "checking$-$the$-$box" and treat the U$.$K$.$ PLC as a foreign disregarded entity $($i$.$e$.$ a foreign branch$)$ for U$.$S$.$ tax purposes.

Assume $1)$ that any dividends from a U$.$K$.$ entity to a U$.$S$.$ person is subject to a $15\%$ U$.$K$.$ withholding tax under the U$.$S$.-$U$.$K$.$ tax treaty and $2)$ that the title on all foreign widget sales passes in the U$.$K$.$

a$.$ If Henry "checks$-$the$-$box" and treats U$.$K$.$ PLC as a foreign branch, what is Henry's foreign tax credit position in Year $1.$ Assume that U$.$K$.$ PLC does not pay any dividends to U$.$S$.$ LLC$?(2$ points$)$

b$.$ If Henry "checks$-$the$-$box" and treats U$.$K$.$ PLC as a foreign branch, what is Henry's foreign tax credit position in Year $1,$ assuming U$.$K$.$ PLC pays a gross dividend of $$80,000?[$Note: U$.$K$.$ PLC is subject to double$-$taxation in the U$.$K$.,$ corporate income tax on its taxable income and withholding taxes on the dividends it pays to U$.$S$.$ LLC$](1$ point$)$

c$.$ What is Henry's foreign tax credit position in Year $1$ if the U$.$K$.$ PLC is not "checked" $($i$.$e$.,$ it is treated as a foreign corporation for U$.$S$.$ tax purposes$)$ and pays a dividend of $$80,000$ to U$.$S$.$ LLC$?(1$ point$)$

NOTE: U$.$S$.$ LLC is a flow$-$thru entity $($i$.$e$,$ they are not a U$.$S$.$ C$-$Corporation$),$ its taxable income is reported on Henry's U$.$S$.$ tax return.