Boca Corporation, a U

Multiple Choice

Boca Corporation, a U.S. corporation, reported U.S. taxable income of $1,000,000 in 2014. Included in the computation of taxable income was foreign source taxable income of $200,000, of which $87,500 was a dividend received from the corporation's 100 percent owned subsidiary in Ireland. The dividend brought with it a deemed paid credit of $12,500. In addition, a withholding tax of $4,375 was imposed on the dividend. Compute Boca Corporation's net U.S. tax liability for 2014. Assume a U.S. tax rate of 34 percent.

A) $335,625
B) $327,500
C) $327,375
D) $323,125