Dixie Inc., a Tennessee corporation, conducts business through branch offices in the United States, Mexico, and Canada. Dixie owns 100 percent of the stock of two foreign subsidiaries, Dix-Col Inc. and Dix-Per Inc., through which it conducts its South American business. This year, Dixie recognized the following items of taxable income:

U.S. source income from domestic branch $ 5,170,000

Foreign source income from foreign branches 1,173,800

Cash dividends received from Dix-Col 312,000

Cash dividends received from Dix-Per 301,500

During the year, Dixie paid $217,000 income tax to Mexico and $335,000 income tax to Canada. It paid no direct income taxes to any other foreign country. However, Dix-Col paid a 20 percent income tax to the country of Colombia, and Dix-Per paid a 37 percent income tax to the country of Peru. U.S. tax rate is 34 percent.

a. Compute Dixies taxable income. (Round your intermediate calculations to the nearest whole dollar.)

b. Compute Dixies U.S. tax. (Do not round any intermediate division. Round your intermediate calculations to the nearest whole dollar.)