### Question
How does Possessions of the United States define adjusted base period income?


### Answer
Under *26 U.S.C. § 936*, **adjusted base period income** is defined as:

> the average of the inflation-adjusted possession incomes of the corporation for each base period year

#### Citation:
  - *26 U.S.C. § 936*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart D-Possessions of the United States**

