Phoenix, Inc

question 2

Multiple Choice

Phoenix, Inc., a U.S.shareholder owns 100% of a CFC from which Phoenix receives a $650,000 distribution.The CFC's E & P is composed of the following amounts.
-$400,000 attributable to previously taxed increases in investment in U.S.property.
-$200,000 attributable to previously taxed Subpart F income.
-$100,000 attributable to other E & P.
Phoenix recognizes a taxable dividend of:

• A)$650,000.
• B)$600,000.
• C)$200,000.
• D)$50,000.
• E)None of the above.

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Definitions:

County Attorney

A legal officer representing a county in civil litigations and serving as the legal advisor to county officials, often involved in prosecuting crimes at the local level.

Arson

The willful and malicious burning of a building (and, in some states, personal property) owned by another. Arson statutes have been extended to cover the destruction of any building, regardless of ownership, by fire or explosion.

Convicted

The act of being declared guilty of a crime by the verdict of a jury or the decision of a judge in a court of law.

Felony

A crime—such as arson, murder, assault, or robbery—that carries the most severe sanctions. Sanctions range from one year in a state or federal prison to the death penalty.