In Order to Qualify as a Foreign Sales Corporation Under

question 47

True/False

In order to qualify as a foreign sales corporation under U.S.tax law,the company must have management outside of the United States in one of the less developed countries approved by the Department of Treasury.

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Definitions:

Amortized Cost

The method of accounting for the gradual reduction in the cost value of an intangible asset or a loan through periodic charges to income over its useful life or term.

Equity Securities

Financial instruments representing ownership in a corporation, entity, or assets, such as stocks.

Short Period

A brief duration of time, particularly in accounting or financial contexts, often referring to less than one fiscal year.

Designated

Usually refers to something that has been officially assigned a particular status, role, or purpose.