Yes, both of these are correct. To answer to question 1, if your only income reported is the sale of this property and if the foreign taxes you paid on it are significant, then your credit is correct. Foreign tax credit or FTC is based on a ratio whereas if you take the amount of foreign taxes and multiply it by (income from foreign sources / total income from all sources). Here is how it works.
If your taxes were $50,000 taxed on a $400,000 sale, your FTC is ($50,000)($400,000/$400,000). In this case, your FTC is $50,000. Now let's assume, you have additional US income of $100,000. The FTC will calculate as follows: ($50,000)$400,000/$500,000). In this case your FTC is $40,000 because of the added $100,000.
The foreign tax credit is a non-refundable credit which will reduce the amount of tax liability to zero or closer to zero. Any excess is treated as a carryover.
In your second question, it depends on how India assessed your Fair Market Value at the time of inheritance. This does conform to the US standard that your Fair Market value is determined at the time of inheritance and not at the time of the sale. In this case, it would be shown at the $74 exchange rate.
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