Hickman, Inc

Multiple Choice

Hickman, Inc., a U.S. corporation, operates an unincorporated branch manufacturing operation in the United Kingdom. Hickman, Inc., reports $900,000 of taxable income from the U.K. branch on its U.S. tax return along with $1,300,000 of taxable income from its U.S. operations. Hickman paid $270,000 in U.K. income taxes related to the $900,000 in branch income. Assuming a U.S. tax rate of 35%, what is Hickman's U.S. tax liability after any allowable foreign tax credits?

A) $0.
B) $455,000.
C) $500,000.
D) $770,000.
E) Some other amount.