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:

Debris Slide

The downslope movement of soil, weathered sediment, or other unconsolidated material, partly as a sliding, coherent mass and partly by internal shearing and flow.

Rotational Slide

A type of landslide involving the rotational movement of rock or soil along a curved surface, typically caused by the undercutting of a slope or the saturation of soil.

Debris Avalanche

A high-velocity flow of soil, sediment, and rock, commonly from the collapse of a steep mountainside.

Permafrost

Permanently frozen ground that occurs in high latitude regions of the Earth, consisting of soil, gravel, and sand usually bound together by ice.