laco Leather Inc., a U.S. corporation, reported total taxable income of $5.7 million. Taxable income included $1.6 million of foreign ource taxable income from the company's branch operations in Mexico. All of the branch income is foreign branch income. Waco paid lexican income taxes of $320,000 on its branch income. ompute Waco's allowable foreign tax credit. (Enter your answer in dollars and not in millions of dollars.)