Global World, a U.S. corporation, has interest expense for the tax year of $200,000, no portion...

 

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Global World, a U.S. corporation, has interest expense for the tax year of $200,000, no portion of which is directly allocable to identified property under the regulations. Global World's worldwide assets have an adjusted basis of $5,000,000 and a value of $10,000,000, of which assets having an adjusted basis of $4,000,000 and a value of $6,000,000 generate U.S.-source income. How much of the interest expense is apportioned to U.S.- source income? Global World, a U.S. corporation, has interest expense for the tax year of $200,000, no portion of which is directly allocable to identified property under the regulations. Global World's worldwide assets have an adjusted basis of $5,000,000 and a value of $10,000,000, of which assets having an adjusted basis of $4,000,000 and a value of $6,000,000 generate U.S.-source income. How much of the interest expense is apportioned to U.S.- source income?

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