USAco, a domestic corporation and accrual basis taxpayer, operates a Canadian branch. The functional currency of Canadian branch is the Canadian dollar (C$). During the year, the branch earns income of C$ 200,000 and pays Canadian income taxes of C$ 40,000 when filing its year one return during year two. The relevant Canadian dollar to U.S. dollar exchange rates are as follows:

Average rate during year one: 2 to 1.

Rate on December 31 of year one: 1.5 to 1.

Rate on January 1 of year two: 1.5 to 1.

Average rate during year two: 1 to 1.

What is the U.S. dollar amount of USAcos income earned in Canada and foreign income taxes paid in Canada during year one?