Identify Which of the Following Statements Is True

question 71

Multiple Choice

Identify which of the following statements is true.

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

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Definitions:

DSM

Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as a guide to diagnosing mental disorders.

Neurosis

A class of mental disorders characterized by anxiety, phobias, or other obsessive or compulsive behaviors, not attributed to the disruptions in personality or reality seen in psychosis.

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a manual published by the American Psychiatric Association that provides criteria for the diagnosis of mental disorders.

Specific Phobias

Intense, irrational fears of specific objects or situations, such as heights, spiders, or flying, that lead to avoidance behavior.