Comprehensive Problem $24-62($LO $24-1,$ LO $24-2,$ LO $24-3,$ LO $24-4,$ LO $24-5,$ LO $24-6)($Algo$)$

Euro Corporation, a U$.$S$.$ corporation, operates through a branch in Germany. During $2024,$ the branch reported taxable income of $\backslash (\backslash$$ $1,500,000\backslash )$ and paid German income taxes of $\backslash (\backslash$$ $450,000\backslash ).$ In addition, Euro received $\backslash (\backslash$$ $55,000\backslash )$ of dividends from its $5$ percent investment in the stock of Maple Leaf Company, a Canadian corporation. The dividend was subject to a withholding tax of $\backslash$$$5,500.$ Euro reported U$.$S$.$ taxable income from its manufacturing operations of $\backslash (\backslash$$ $1,445,000\backslash ).$ Total taxable income was $\backslash (\backslash$$ $3,000,000\backslash ).$ Pre$-$credit U$.$S$.$ taxes on the taxable income were $\backslash$$$630,000.$ Included in the computation of Euro's taxable income were "definitely allocable" expenses of $\backslash (\backslash$$ $750,000,50\backslash )$ percent of which were related to the German branch taxable income.

Required:

Complete pages $1$ and $2$ of Form $1118$ for just the foreign branch income reported by Euro.

Note: Use $2024$ tax rules regardless of year on tax form.

Prepare Form $1118.$

$1118$ PG$1$

$1118$ PG$2$ Page $2$ of Form $1118.$

Form $1118($Rev$.12-2022)$

Part I$$Foreign Taxes Paid, Accrued, and Deemed Paid $($see instructions$)$ 'art II$$Separate Foreign Tax Credit $($Complete a separate Part II for each applicable category of income.$)$