I don't know enough to know if the corporation is subject to Form 1118. I would not expect a US C Corp to need to file Form 1118 for capital gain on the sale of its US real estate, unless the operations already require Form 1118. Then, the shareholder who is the German national will already have a Form 1116 for their activities in consideration of whatever else is reportable (and might be taxable) to Germany.

I wanted to point out that the initial phrasing was too intertwined to even work through the details or a worksheet. The foreign reporting issue is the same issue; two different entities, so they report accordingly.