Worksheet A (continued)

Worksheet A (continued)

Summary: This is an example of worksheet A, page 2, which is used to determine the shareholder's share of Subpart F income. The line items to be completed are:

"17. Adjusted net foreign base company oil-related income:"
"17a. Enter amount from line 5" field
"17b. Expenses allocated and apportioned to line 5 under section 954(b)(5)" field
"17c. Subtract line 17b from line 17a" field
"18. Adjusted net full inclusion foreign base company income:"
"18a. Enter the excess, if any, of line 12 over line 8" field
"18b. Expenses allocated and apportioned under section 954(b)(5)" field
"18c. Net full inclusion foreign base company income. Subtract line 18b from line 18a" field
"18d. Net full inclusion foreign base company income excluded under high-tax exception" field
"18e. Subtract line 18d from line 18c" field
"19. Adjusted net foreign base company income. Add lines 14h, 15e, 16e, 17c, and 18e" field
"20. Adjusted net insurance income (other than related person insurance income):"
"20a. Enter amount from line 7 (other than related person insurance income)" field
"20b. Expenses allocated and apportioned to the amount from line 7 under section 953" field
"20c. Net insurance income. Subtract line 20b from line 20a" field
"20d. Net insurance income excluded under high-tax exception" field
"20e. Subtract line 20d from line 20c" field
"21. Adjusted net related person insurance income:"
"21a. Enter amount from line 7 that is related person insurance income" field
"21b. Expenses allocated and apportioned to related person insurance income under section 953" field
"21c. Net related person insurance income. Subtract line 21b from line 21a" field
"21d. Net related person insurance income excluded under high-tax exception" field
"21e. Subtract line 21d from line 21c" field
"22. International boycott income (section 952(a)(3))" field
"23. Illegal bribes, kickbacks, and other payments (section 952(a)(4))" field
"24. Income from a country described in section 952(a)(5)" field
"25. Subpart F income before application of sections 952(b) and (c) and section 959(b). Add lines 19, 20e, 21e, and 22 through 24" field
"26. Enter portion of line 25 that is U.S. source income effectively connected with a U.S. trade or business (section 952(b))" field
"27. Exclusions under section 959(b)" field
"28. Total subpart F income. Subtract the sum of lines 26 and 27 from line 25" field
"29. Current E.&P." field
"30. Enter the smaller of line 28 or line 29" field
"31. Shareholder's pro rata share of line 30" field
"32. Shareholder's pro rata share of export trade income" field
"33. Subtract line 32 from line 31" field
"34. Divide the number of days in the tax year that the corporation was a C.F.C. by the number of days in the tax year and multiply the result by line 33" field
"35. Dividends paid to any other person with respect to your stock during the tax year" field
"36. Divide the number of days in the tax year you did not own such stock by the number of days in the tax year and multiply the result by line 33" field
"37. Enter the smaller of line 35 or line 36" field
"38a. Shareholder's pro rata share of subpart F income. Subtract line 37 from line 34" field
"38b Translate the amount on line 38a from functional currency to U.S. dollars at the average exchange rate. See section 989(b). Enter the result here and on line 1, Schedule I" field