a. Discuss tax and nontax advantages and disadvantages if Kaplan decides to oper

a. Discuss tax and nontax advantages and disadvantages if Kaplan decides to operatethe foreign business in either of the following ways:(1) Through a U.S. corporate subsidiary.(2) Through a corporation created under the laws of the host country.b. Assume that Kaplan chooses to form a foreign corporation to conduct its non-U.S.operations. At the end of its fourth year of operations the foreign corporation distributes$100000 to Kaplan from its earnings and profits previously taxed by the host country. Under a favorable tax treaty no taxes are withheld on the dividend payment. Kaplan has U.S. taxable income of $400000 from other sources. Compute the amount of dividend income Kaplan must recognize as a result of this distribution as well as its U.S. income tax liability after consideration of any foreigntax credit