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:

Processor Speed

The rate at which a processor can execute instructions, typically measured in gigahertz (GHz), indicating billions of cycles per second.

Outputs

Refers to the devices or elements controlled by a system, which change state or perform actions based on processed instructions or inputs.

Parallel Logic

A method of computation or digital circuit design where multiple processes or operations are carried out simultaneously.