Tailor johnson, a u. s. maker of fine menswear, has a subsidiary in ethiopia. this year, the subsidiary reported and repatriated earnings before interest and taxes (ebit) of 250 million ethiopian birrs. the current exchange rate is 7.6288 birrs/dollar or upper s equals $ 0.1311 divided by birr. the ethiopian tax rate on this activity is 24 %. u. s. tax law requires tailor johnson to pay taxes on the ethiopian earnings at the same rate as on profits earned in the united states, which is currently 37 %. however, the united states gives a full tax credit for foreign taxes paid up to the amount of the u. s. tax liability. what is tailor johnson's u. s. tax liability on its ethiopian subsidiary?

Because of the violent nature of the sport, professional american football players are at risk of suffering concussions (or brain injuries) during the violent collisions that occur between players during the game. violent collisions involving hits to the head are particularly risky. suppose the commissioner of the national football league (nfl) institutes a rule requiring players to wear a new, lighter helmet that is designed to reduce head trauma during collisions between players on the field. while the new helmets the probability of a concussion resulting from each individual collision, at the same time the new helmets could also give football players an incentive to play more , which could potentially the amount of violent collisions and thus the number of concussions suffered by nfl players, all else equal.