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 140 million Ethiopian birrs. The current exchange rate is 9.6046 birrs/dollar or S=$0.1041/birr.
The Ethiopian tax rate on this activity is 21%. 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 39%.
?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?
Tailor? Johnson's U.S. tax liability on its Ethiopian subsidiary is $___million. ? (Round to two decimal? places.)