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Charlotte Inc., a domestic corporation, has $2.5 million of qualified foreign taxes paid during the year on $5 million of foreign income. Assume the U.S.
Charlotte Inc., a domestic corporation, has $2.5 million of qualified foreign taxes paid during the year on $5 million of foreign income. Assume the U.S. tax rate is 21 percent. The foreign tax credit limitation is $1.75 million. The U.S. tax liability on worldwide income before the foreign tax credit is $4.2 million. After applying the appropriate foreign tax credit, Charlotte's tax liability is?
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