A Controlled Foreign Corporation (CFC)is Incorporated in Country B,and Is

question 41

Multiple Choice

A controlled foreign corporation (CFC) is incorporated in Country B,and is 100% owned by American Manufacturing Corporation.It purchases raw materials from its U.S.parent corporation,manufactures widgets,and sells 70% of the widgets to unrelated purchasers in Country A and 30% to unrelated purchasers in Country B.All widgets will be used in the countries in which they are purchased.The sales produce $100,000 of taxable income.The foreign-base company sales income reportable by American Manufacturing Corporation under the Subpart F rules is

• A)$0.
• B)$30,000.
• C)$70,000.
• D)$100,000.

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Definitions:

Public Safety

The welfare and protection of the general public, commonly assured by governmental organizations.

Fund Balance Classifications

Categories used to report the net position of government funds under accounting standards, showing restrictions or commitments on fund use.

Restricted Fund Balance

The portion of a fund's balance that is limited in use by external donors, grant conditions, or legal restrictions.

Assigned Fund Balance

Part of a governmental entity's fund balance that is earmarked for a specific use but can be changed by the entity's management.