The Mexican branch of a U.S. corporation paid $2,000,000 in taxes to the government of Mexico on income it generated there. The corporation is subject to a 21% tax rate in the U.S.
How much foreign tax credit can be taken in calculating the taxes owed to the U.S. government on $10,000,000 of the Mexican branch income?
A. $ 0
B. $2,100,000.
C. $100,000.
D. $2,000,000.