Identify Which of the Following Statements Is True

question 31

Multiple Choice

Identify which of the following statements is true.

• A)When a controlled foreign corporation (CFC)uses Subpart F income to invest in U.S. property, the investments are characterized as constructive distributions.
• B)A controlled foreign corporation (CFC)can avoid the constructive dividend distribution resulting from investments in U.S. property if it invests in U.S. government obligations.
• C)Distributions made by a controlled foreign corporation (CFC)are deemed to be paid first from tax-deferred earnings.
• D)All of the above are false.

---

Definitions:

Ligament

A short band of tough, flexible, fibrous connective tissue that connects two bones or cartilages or holds together a joint.

Bronchoconstriction

A narrowing of the airways in the lungs due to the tightening of surrounding smooth muscle, leading to coughing, wheezing, and shortness of breath.

Airway Inflammation

The swelling and irritation of the air passages within the lungs, which can lead to symptoms such as coughing, wheezing, and shortness of breath.

Breathing Difficulty

Challenges or discomfort in inhaling or exhaling air, which can be a symptom of various health conditions.