Problem: Fairview, Inc. is a CFC with total foreign earnings of $30 million, of which $8 million is considered subpart F income. Fairview owns tangible business property with an adjusted tax basis of $40 million. Collins Corporation, a U.S. corporation, owns 100 percent of the stock of Fairview.
a. Compute Fairview's global intangible low-taxed income (GILTI).
b. Compute Collin's incremental U.S. Tax liability as a result of its ownership in Fairview