Question: Reno Corporation, a U . S . corporation, reported total taxable income of $ 6 , 2 8 0 , 0 0 0 in the

Reno Corporation, a U.S. corporation, reported total taxable income of $6,280,000 in the current year. Taxable income included $1,884,000 of foreign source taxable income from the company's branch operations in Canada. All of the branch income is foreign branch income. Reno paid Canadian income taxes of $464,000 on its branch income. Compute Reno's net U.S. tax liability and any foreign tax credit carryover. Assume an exchange rate of C$1= $1.

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