Reno Corporation, a U

Essay

Reno Corporation, a U.S. corporation, reported total taxable income of $6,000,000 in 2014. Taxable income included $1,800,000 of foreign source taxable income from the company's branch operations in Canada. All of the branch income is general category income. Reno paid Canadian income taxes of $720,000 on its branch income. Compute Reno's net U.S. tax liability and any foreign tax credit carryover for 2013. Use a U.S. corporate tax rate of 34%.