Yale Corporation has a precredit U.S. tax of $525,000 on $2,500,000 of taxable income in 2021 Yate has $300,000 of foreign source taxable income characterized as foreign branch income and $250,000 of foreign source taxable income characterized as passive category income. Yale paid $100.000 of foreign income taxes on the foreign branch income and $140.000 of foreign income taxes on the passive category income.
What amount of foreign tax credit (FTC) can Yale use on its 2021 U.S. tax return and what is the amount of the FTC carryforward , if any?