Cheney Is a Controlled Foreign Corporation with Total Foreign Earnings

question 69

Multiple Choice

Cheney is a controlled foreign corporation with total foreign earnings of $4 million, of which $1.3 million is considered subpart F income. Cheney owns tangible business property with an adjusted tax basis of $6 million. Compute Cheney's global intangible low-taxed income.

• A) $2.7 million
• B) $0
• C) $2.1 million
• D) $4 million

---

Definitions:

Adjust to Stress

The process by which organisms attempt to maintain homeostasis and respond to physical or psychological challenges through behavioral or physiological changes.

Fractures Heal

The natural process of bone repair after a break or crack, typically involving the formation of a blood clot followed by the growth of new bone tissue.

Osteoclast Activity

The process involving osteoclast cells breaking down bone tissue, releasing calcium and phosphate into the blood.

Epiphyseal Plate

Also known as the growth plate, it is a hyaline cartilage plate in the metaphysis at each end of a long bone, where bone growth occurs in children and adolescents.