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Waco Leather Inc., a US. corporation, reported total taxable income of $5.9 million. Taxable income included $2.2 million of foreign source taxable income from the

Waco Leather Inc., a US. corporation, reported total taxable income of $5.9 million. Taxable income included $2.2 million of foreign source taxable income from the company's branch operations in Mexico. All of the branch income is foreign branch income. Waco paid Mexican income taxes of $374,000 on its branch income. Compute Waco's allowable foreign tax credit. (Enter your answer in dollars and not in millions of dollars.) Foreign tax credit

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