Cheyenne Corporation Is a U

question 49

Short Answer

Cheyenne Corporation is a U.S.corporation engaged in the manufacture and sale of mining equipment.The company handles its export sales through sales branches in Canada and Mexico.The average tax book value of Cheyenne's assets for the year was $200 million,of which $100 million generated U.S.source income and $100 million generated foreign source income.The average fair market value of Cheyenne's assets was $600 million,of which $400 million generated U.S.source income and $200 million generated foreign source income.Cheyenne's total interest expense for the year was $30 million.What is the minimum amount of interest expense that Cheyenne can apportion against its foreign source gross income for foreign tax credit purposes,assuming the company can elect either apportionment method?

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Definitions:

Sustainability

The practice of maintaining processes or states in a manner that prevents depletion of natural resources, ensuring long-term environmental balance.

Sustainability

The practice of maintaining processes or systems in a way that does not deplete natural resources or harm the environment, ensuring long-term ecological balance.

Greenhouse Gas Emissions

The release of gases into Earth's atmosphere that trap heat, contributing to global warming and climate change.

ISO 14000

A family of standards related to environmental management that exists to help organizations minimize their environmental impact.