Thank you. Yes correct, all unrecaptured 1250 gain. 
I made the adjustment for line 1a on 1116 as I was told it needed to be made. But given your explanation and assistance I’m going to take it out. 
Last question if you willingly :), without the adjustment the FTC is now $12k, which is greater than the 15% tax charged on the foreign income. This that ok?

Thank you!!