ACC$337-$ Roosevelt University

Chapter $8$

Zeta Corporation $($a U$.$S$.$ taxpayer$)$ has several foreign subsidiaries with the following:

Before$-$tax income $56800000$

Average corporate income tax rate $15\%$

Aggregate property, plant, and equipment $342000000$

Rate of return on QBAI $10\%$

Determine the amount of global intangible low$-$taxed income $($GILTI$)$ Zeta was required

to report in its U$.$S$.$ taxable income in the current year.

Tested income

QBAI $\backslash$times Rate of return

Excess

$50\%$ deduction

GILTI included in U$.$S parent$$s taxable income