Frost Inc., a calendar year U.S. corporation, owns 20 percent of the stock of Snowflake, Inc. a calendar year specified foreign corporation. Prior to 2018, Snowflake has accumulated deferred foreign earnings of $30 million and zero aggregate foreign cash position. Compute Frost's tax liability on its mandatory inclusion amount related to its ownership of Snowflake.

Question

Quizplus · Accepted Answer

Frost Inc. owns less than 10% of Snowflake, Inc., so it is not subject to the mandatory inclusion of deferred foreign earnings under the transition tax rules of the Tax Cuts and Jobs Act.

Frost Inc, a Calendar Year U