Chapeau Company, a U. S. corporation, operates through a branch in Champagnia. The source rules used by Champagnia are identical to those used by the United States. For 2020, Chapeau has $2,000 of gross income: $1,200 from U. S. sources and $800 from sources within Champagnia. The $1,200 of U. S. source income and $700 of the foreign source income are attributable to manufacturing activities in Champagnia (foreign branch income). The remaining $100 of foreign source income is passive category interest income. Chapeau had $500 of expenses other than taxes, all of which are allocated directly to manufacturing income ($200 of which is apportioned to foreign sources). Chapeau paid $150 of income taxes to Champagnia on its manufacturing income. The interest income was subject to a 10 percent withholding tax of $10. Required:
Assume the U. S. tax rate is 35 percent. Compute Chapeau’s allowable foreign tax credit in 2016.