In 2017, Phoenix Corporation Is a Controlled Foreign Corporation (CFC)incorporated

question 25

Multiple Choice

In 2017, Phoenix Corporation is a controlled foreign corporation (CFC) incorporated in Country X. It is 100% owned by its U.S parent corporation. Phoenix has $80,000 of taxable income from the sale of widgets that were purchased from their U.S. parent corporation. All widgets have the same gross profit. Sixty percent of the widgets were sold through a Country Y wholesaler that is 100% owned by Phoenix, and are destined for use in Country Y. The remaining 40% are sold through unrelated Country X wholesalers and are destined for use in Country X. What amount of profits will be constructively distributed as foreign-based company sales income to the U.S. parent company?

• A)$0
• B)$32,000
• C)$48,000
• D)$80,000

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Definitions:

Conditioned Reinforcement

A process where a stimulus strengthens a behavior because it is associated with a primary reinforcer.

Generalization

The process of applying conclusions or rules derived from specific instances to broader contexts or similar situations.

Cognitive Map

An internal psychological representation of the spatial layout of the external world.

Discriminative Stimulus

A specific stimulus in the presence of which a particular response is more likely to be reinforced.