; tested loss For purposes of this section— (A) Tested income The term tested income means, with respect to any controlled foreign corporation for any taxable year of such controlled foreign corporation, the excess (if any) of— (i) the gross income of such corporation determined without regard to— (I) any item of income described in section 952(b), (II) any gross income taken into account in determining the subpart F income of such corporation, (III) any gross income excluded from the foreign base company income (as defined in section 954) and the insurance income (as defined in section 953) of such corporation by reason of section 954(b)(4), (IV) any dividend received from a related person (as defined in section 954(d)(3)), and (V) any foreign oil and gas extraction income (as defined in section 907(c)(1)) of such corporation, over (ii) the deductions (including taxes) properly allocable to such gross income under rules similar to the rules of section 954(b)(5). (B) Tested loss (i) In general The term tested loss means, with respect to any controlled foreign corporation for any taxable year of such controlled foreign corporation, the excess (if any) of the amount described in subparagraph (A)(ii) over the amount described in subparagraph (A)(i). (ii) Coordination with subpart F to deny double benefit of losses Section 952(c)(1)(A) shall be applied by increasing the earnings and profits of the controlled foreign corporation by the tested loss of such corporation. (d) Qualified business asset investment For purposes of this section— (1) In general The term qualified business asset investment means, with respect to any corporation for any taxable year of such controlled foreign corporation, the average of the aggregate of the corporation’s adjusted bases as of the close of each quarter of such taxable year in specified tangible property — (A) used in a trade or business of the corporation, and (B) of a type with respect to which a deduction is allowable under section 167. (2) Specified tangible property (A) In