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Euro Corporation, a U.S. corporation, operates through a branch in Germany. During 2022, the branch reported taxable income of $1,000,000 and paid German Income taxes

Euro Corporation, a U.S. corporation, operates through a branch in Germany. During 2022, the branch reported taxable income of $1,000,000 and paid German Income taxes of $300,000. In addition, Euro received $50,000 of dividends from its 5% investment in the stock of maple Leaf Company, a Canadian corporation. The dividend was subject to withholding tax of $5,000. Euro reported US taxable income from its manufacturing operation of $950,000. Total taxable income was 2,000,000. Pre-credit U.S taxes on the taxable income were $420,000. Included in the computation of Euro Taxable income were "definitely allocable" expenses of $500,000, 50% of which were related to German branch taxable income. Complete pages 1 and 2 of form 1118 for just the foreign branch income reported by Euro. You can use the fill-in forms available on the IRS website.

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