Johnson Trailers Generated $1

Johnson Trailers generated $1.5 million of income from domestic operations and an additional $880,000 from its only foreign subsidiary. Its tax rate is 30 percent on domestic income and 35 percent on foreign income. Compare the capital export and import neutrality methods of taxation. Which method requires the most in total taxes paid (by both units) , and by how much?

A) CEN; $45,000
B) CEN; $18,000
C) Both methods require the same payment of taxes.
D) CIN; $18,000
E) CIN; $45,000