Form 1120S, Sch K-1 shows a loss of ($25K) and dividends of 100K. Box 16E on schedule K-1 shows gross revenues of 400K and allowable deductions of 16J of 100K. Foreign tax credits at 16M of 60K. When you run form 1116 the foreign tax credit completely wipes out all the tax on US W-2 wages of $300

foreign tax credit