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Waco Leather Inc., a U.S. corporation, reported total taxable income of $4.7 million. Taxable income included $1.65 million of foreign source taxable income from the

Waco Leather Inc., a U.S. corporation, reported total taxable income of $4.7 million. Taxable income included $1.65 million of foreign source taxable income from the companys branch operations in Mexico. All of the branch income is general category income. Waco paid Mexican income taxes of $412,500 on its branch income.

Compute Wacos allowable foreign tax credit. Assume a U.S. corporate tax rate of 34 percent. (Do not round intermediate computations.

Enter your answers in dollars and not in millions of dollars.)

Foreign Tax Credit:

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