Which of the Following Statements Is True, Regarding the Sourcing

question 89

Multiple Choice

Which of the following statements is true, regarding the sourcing of dividend income?

• A) Dividends are sourced based on the residence of the recipient.
• B) Dividends from non-U.S. corporations are always foreign source.
• C) Dividends from non-U.S. corporations are foreign-source only to the extent that 80% or more of the non-U.S. corporation's gross income for the 3 years preceding the year of the dividend payment was effectively connected with the conduct of a non-U.S. trade or business.
• D) A percentage of dividends from non-U.S. corporations are U.S. source to the extent that 25% or more of the non-U.S. corporation's gross income for the 3 years preceding the year of the dividend payment was effectively connected with the conduct of a U.S. trade or business.

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Definitions:

Punishment by Application

A behavioral psychology term referring to the addition of an undesirable stimulus to decrease a specific behavior.

Negative Reinforcement

A conditioning process where the removal of an unfavorable event or outcome after the display of a behavior increases the likelihood of that behavior being repeated in the future.

Operant Extinction

The process in behavioral psychology where the frequency of a previously reinforced behavior decreases when that behavior is no longer reinforced.

Belittling Behavior

Actions or comments meant to diminish someone’s sense of self-worth or accomplishments.