Identify Which of the Following Statements Is True

question 48

Multiple Choice

Identify which of the following statements is true.

• A)For a foreign corporation to be a controlled foreign corporation (CFC), more than 40% of its voting stock, or more than 40% of the value of its outstanding stock, must be owned by U.S. shareholders on any day of the corporation's tax year.
• B)Under the Subpart F rules, controlled foreign corporations (CFCs)are required to distribute a certain portion of their income as dividends to their U.S. shareholders.
• C)When a controlled foreign corporation (CFC)earns Subpart F income, such income is considered to be a constructive distribution to the CFC's U.S. shareholders on the last day of the CFC's tax year, or the last day on which CFC status is retained.
• D)All of the above are true.

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Definitions:

Atomic Number

The number of protons in the nucleus of an atom, determining the chemical properties of an element and its place in the periodic table.

Helium

A chemical element with symbol He and atomic number 2, known for being a lightweight, inert gas widely used in balloons and as a coolant.

Neon

A chemical element with the symbol Ne and atomic number 10, it is a colorless, odorless, inert monatomic gas under standard conditions, with about two-thirds the density of air and is used in fluorescent lamps and signs.

Argon

A noble gas element with the atomic number 18, colorless, odorless, and inert, making up about 1% of the Earth's atmosphere.