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Waco Leather Inc., a U.S. corporation, reported total taxable income of $5.1 million. Taxable income included $2 million of foreign source taxable income from the

Waco Leather Inc., a U.S. corporation, reported total taxable income of $5.1 million. Taxable income included $2 million of foreign source taxable income from the companys branch operations in Mexico. All of the branch income is foreign branch income. Waco paid Mexican income taxes of $340,000 on its branch income. Compute Wacos allowable foreign tax credit?

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