U.S. individual owns ForCO, a domestic C corporation that owns a CFC. The CFC owns $10 million

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U.S. individual owns ForCO, a domestic C corporation that owns a CFC. The CFC owns $10 million of tangible property, earns $2 million of tested income, and pays $200,000 of foreign income taxes.

a. How much, if any, is ForCO GILTI?

b. How much is ForCO U.S. income tax?

c. Assume the U.S. Individual owns the CFC directly, do your answers to a & b above change? Explain.

Related Book For answer-question

South western Federal Taxation 2017 Corporations, Partnerships, Estates and Trusts

ISBN: 9781305874336

40th edition

Authors: William H. Hoffman, William A. Raabe , David M. Maloney, James C. Young

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Posted Date: Mar 06, 2022 09:36 PM

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U.S. individual owns ForCO, a domestic C corporation that owns a CFC. The CFC owns $10 million

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A controlled foreign corporation CFC is a commercial entity that is registe... View the full answer

South western Federal Taxation 2017 Corporations, Partnerships, Estates and Trusts

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