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Rainier Corporation, a U.S. corporation, manufactures and sells quidgets in the United States, Europe and the Middle East. Rainier conducts its operations in Europe and

Rainier Corporation, a U.S. corporation, manufactures and sells quidgets in the United States, Europe and the Middle East. Rainier conducts its operations in Europe and the Middle East through a German GmbH, which the company elects to treat as a branch, i.e. DRE, for U.S. tax purposes. Rainier also licenses the rights to manufacture quidgets to an unrelated company in China. During the current year, Rainier paid the following foreign taxes, translated into U.S. dollars at the appropriate exchange rate:

National income taxes in Germany $1,500,000

City of Munich income taxes $ 200,000

Value added tax to German government $ 400,000

Payroll tax to the German government (employers share of

social insurance contributions) $ 300,000

Withholding tax on royalties received from China $ 100,000 Saudi Arabian tax on what is actually a royalty $ 75,000

Yemen income tax $ 50,000

What amount of creditable foreign taxes does Rainier incur?

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