Jarok Inc. had the following taxable income.

Note that the foreign taxes paid have NOT been considered in the income amounts below.

U.S. source income $ 1,435,000

Foreign source income 850,000

Total Taxable income $ 2,285,000

Jarok paid foreign income taxes of $315,000.

1. Compute its U.S. income tax liability if it takes the foreign tax credit.

2. Compute its U.S. income tax liability if it takes a foreign tax deduction.