Question 5 of 5 6 Points Click to see additional instructions HotCo, a domestic corporation, produces industrial heaters at its U.S. plant for sale in Canada. HotCo also has a plant in Canada that performs the final stages of production with respect to the heaters sold in Canada. All of the output of the Canadian plant is sold in Canada and 25% of the output of the U.S. plant is shipped to Canada. The Canadian operation is classified as a branch for U.S. tax purposes. During the current year (2020), HotCo's total sales to Canadian customers were $10 million, and the related cost of goods sold is $7 million. The average value of property, plant and equipment is $20 million at the U.S. plant, and $10 million at the Canadian plant. HotCo sells all exported goods with title passing at the Canadian plant. How much of HotCo's export gross profit of $3 million is classified as foreign-source for U.S. tax purposes? HotCo's foreign-source sales is $