Which of the Following Statements Is True, Regarding the Sourcing

question 52

Multiple Choice

Which of the following statements is true, regarding the sourcing of dividend income?

• A) Dividends are sourced based on the residence of the recipient.
• B) Dividends from non-U.S. corporations are always foreign source.
• C) Dividends from non-U.S. corporations are foreign-source only to the extent that 80% or more of the non-
• US. corporation's gross income for the 3 years preceding the year of the dividend payment was effectively
• Connected with the conduct of a non-U.S. trade or business.
• D) A percentage of dividends from non-U.S. corporations are U.S. source to the extent that 25% or more of the non­U.S. corporation's gross income for the 3 years preceding the year of the dividend payment was effectively connected with the conduct of a U.S. trade or business.

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Definitions:

Dark Adaptation

The recovery of the eye’s sensitivity to visual stimuli in darkness after exposure to bright lights.

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to the concentration of cones, specialized for daylight vision, fine detail, and color.

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and enable the perception of color.

Rods

Photoreceptor cells in the retina of the eye that are responsible for vision in low light conditions.