Which of the Following Statements Regarding Inversions Is Incorrect

question 83

Multiple Choice

Which of the following statements regarding inversions is incorrect?

• A)The objective of an inversion is to avoid U.S.tax on worldwide income.
• B)In an inversion,a U.S.corporation reorganizes as a foreign corporation.
• C)The IRS will disregard the inversion if the former shareholders of the U.S.corporation continue to own 60% of the foreign corporation's stock.
• D)The IRS will examine whether the foreign corporation conducts substantial business in the foreign country of incorporation to determine if the inversion is valid.

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Definitions:

Atrium

An open-roofed entrance hall or central court in an ancient Roman house, or a similar large open space in a modern building.

Alveoli

Tiny air sacs in the lungs where gas exchange between air and blood occurs.

Fallopian Tube

A pair of tubes along which eggs travel from the ovaries to the uterus, crucial for fertilization and early embryo transport.

Crus

A term often used in anatomy to refer to parts of the body that resemble a leg or a leglike part, such as the crus of the diaphragm or penis.