Waco Leather, Inc., a U.S. corporation, reported total taxable income of $5 million. Taxable income included 1.5 million of foreign source taxable income from the company's branch operations in Mexico. All of the branch income is general category income. Waco paid Mexican income taxes of $420,000 on its branch income. Compute Waco's allowable foreign tax credit. Assume a U.S. corporate tax rate of 34%.