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

question 22

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) $80,000
• D) $48,000

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Public Life

The aspect of life concerned with public affairs, government, and the communal interests of society, as opposed to private or personal life.

Economic Status

Refers to the financial condition or standing of an individual, group, or area, often evaluated based on income, wealth, and employment.

Adult White Men

Historically, this group was privileged with predominant rights and societal status, especially in voting and property ownership, in various cultures.

Eighteenth-Century

The period from 1701 to 1800 in the Gregorian calendar, marked by significant historical, cultural, and scientific developments.