Question: Oasis Co . , a U . S . shareholder, owns 1 0 0 % of Shack Co . and 1 0 0 % of

Oasis Co., a U.S. shareholder, owns 100% of Shack Co. and 100% of Studio Co., both CFCs. Shack Co. has $300,000 of gross income, of which $50,000 is effectively connected income, and $30,000 is interest expense without any allocable interest income. Shack Co. has $500,000 of machinery used in its trade or business. Studio Co. has a $150,000 loss and machinery worth $1,000,000 used in its operations.a. What is GILTI for Oasis Co.?

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