Illinois Steel is a specialty steel manufacturer that does business in the United States, Canada, and Brazil. Illinois Steel is organized as follows. The parent, Illinois Steel, is incorporated in...

Illinois Steel is a specialty steel manufacturer that does business in the United States, Canada, and Brazil. Illinois Steel is organized as follows. The parent, Illinois Steel, is incorporated in Illinois and had pre-tax income from its U.S. operations of $5 million in 2013. Illinois Steel owns 100% of the stock of ISB, its Brazilian subsidiary, which reported pre-tax income of $3 million in 2013. Illinois Steel directly owns its Canadian operations (that is, the Canadian group is a branch), which recorded pre-tax income of $10 million in 2013. Assume all earnings are reinvested in the country where they were earned. Assume the tax rates in the countries are United States, 35%; Canada, 30%; Brazil, 25%. What is Illinois Steel’s 2013 U.S. tax liability after foreign tax credits?