Problem;

Rick Rocker, a citizen and resident of country F, decides to perform a concert in Los Angeles. The U.S. promoter has agreed to pay Rocker $1 million. Rocker himself incurs $200,000 of expenses in connection with the concert.

Required:

When the promoter pays Rocker his fee, the promoter:

• Should withhold $300,000 of U.S. tax.
• Does not have to withhold any U.S. tax.
• Must withhold tax at Rocker's marginal rates.
• Should withhold $240,000 of U.S. tax.

Note: Please show the work not just the answer.