Strumco, an accrual basis U.S. corporation, manufactures string instruments for sale both in the United States and abroad. Strumcos functional currency is the U.S. dollar. Two years ago, Strumco established a branch sales office in Denmark. The sales office is a qualified business unit with the Danish krone (kr) as its functional currency. In Year 1, the branch had kr60 million of taxable income, and paid kr10 million in Danish income taxes. The Danish krone had an average exchange rate in Year 1 of kr1 equals $1.30 and the spot rate on the date the income tax was paid was kr1 equals $1.20. What are the United States tax consequences of the branchs activities in Year 1?