please explain your answer

on! Questions 10, 11, and 12 are based on the following in M Information for Year 1, Year 2, and Year 3 for the Andean bra tion is presented in the following table. The corporate tax rate lic in Year 1 was 25 percent. In Year 2, the Andean Republici income tax rate to 29 percent. In Year 3, the Andean Republic in tax rate to 36 percent. The U.S. corporate tax rate in each year is branch of Powell x rate in the Andean blic increased its corpo ublic increased its cono ch year is 35 percent. ed its corpora Year 1 $75,000 18,750 26,250 Foreign source income..... Foreign taxes paid ....... U.S. tax before FTC ....... Year 2 $100,000 29,000 35,000 Year 2 $100.000 36,000 35,000 credit allowed in the 10. For Year 1, Year 2, and Year 3, what is the foreign tax credit allow United States? a. $7,500, $6,000, and $0. b. $18,750, $29,000, and $36,000. c. $75,000, $100,000, and $100,000. d. $18,750, $29,000, and $35,000. 11. For Year 3, what is the net U.S. tax liability? a. $35,000. b. $0. c. $1,000 d. $6,000 12. In Year 3, how much excess foreign tax credit can Powell carry back? a. $7,500 b. $6,000. c. $1,000 d. $0