Euro Corporation, a U.S. corporation, operates through a branch in Germany. During 2021, 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 percent investment in the stock of Maple Leaf Company, a Canadian corporation. The dividend was subject to a withholding tax of $5,000. Euro reported U.S. taxable income from its manufacturing operations 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's taxable income were "definitely allocable" expenses of $500,000,50 percent of which were related to the German branch taxable income. Complete pages 1 and 2 of Form 1118 for just the foreign branch income reported by Euro. (Use 2021 tax rules regardless of year on tax form.) Prepare Form 1118. Page 1 of Form 1118. Page 2 of Form 1118. Form 1118 (Rev. 12-2020) Page 2 Schedule B Foreign Tax Credit (Report all foreign tax amounts in U.S. dollars.) Part I-Foreign Taxes Paid, Accrued, and Deemed Paid (see instructions) 8a Total taxable income from all sources (enter taxable income from the corporation's tax return) b Adjustments to line 8a (see instructions) c Subtract line 8b from line 8a 9 Divide line 7 by line 8 . Enter the resulting fraction as a decimal (see instructions). If line 7 is greater than line 8c, enter 1 10 Total U.S. income tax against which credit is allowed (regular tax liability (see section 26(b)) minus any American Samoa economic development credit) 11 Multiply line 9 by line 10 12 Increase in limitation (section 960(c) )). Form 1118 (Rev. 12-2020) Euro Corporation, a U.S. corporation, operates through a branch in Germany. During 2021, 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 percent investment in the stock of Maple Leaf Company, a Canadian corporation. The dividend was subject to a withholding tax of $5,000. Euro reported U.S. taxable income from its manufacturing operations 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's taxable income were "definitely allocable" expenses of $500,000,50 percent of which were related to the German branch taxable income. Complete pages 1 and 2 of Form 1118 for just the foreign branch income reported by Euro. (Use 2021 tax rules regardless of year on tax form.) Prepare Form 1118. Page 1 of Form 1118. Page 2 of Form 1118. Form 1118 (Rev. 12-2020) Page 2 Schedule B Foreign Tax Credit (Report all foreign tax amounts in U.S. dollars.) Part I-Foreign Taxes Paid, Accrued, and Deemed Paid (see instructions) 8a Total taxable income from all sources (enter taxable income from the corporation's tax return) b Adjustments to line 8a (see instructions) c Subtract line 8b from line 8a 9 Divide line 7 by line 8 . Enter the resulting fraction as a decimal (see instructions). If line 7 is greater than line 8c, enter 1 10 Total U.S. income tax against which credit is allowed (regular tax liability (see section 26(b)) minus any American Samoa economic development credit) 11 Multiply line 9 by line 10 12 Increase in limitation (section 960(c) )). Form 1118 (Rev. 12-2020)