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$\text{'}$s effective tax rate be $($i$.$e$.,$ MSB$\text{'}$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$\text{'}$s effective tax rate be$?$