Which of the Following Income Earned by a Controlled Foreign

question 40

Multiple Choice

Which of the following income earned by a controlled foreign corporation incorporated in Spain is not foreign personal holding company income?

• A) Gross profit from the manufacture and sale of inventory to an unrelated party.
• B) Interest income received from a loan to an unrelated party.
• C) Rent received from a passive investment in an apartment complex.
• D) Dividend income from a five percent investment in an unrelated corporation.

---

Definitions:

Accomplishment

A sense of achievement or completion that comes from having successfully completed a task or objective.

Intrinsic Rewards

In expectancy theory, the internal factors related to the value of work, including the amount of creativity allowed, the degree of responsibility, and the satisfaction of helping others.

Satisfaction

A state of fulfillment or contentment resulting from achieving what one desires or from the successful resolution of needs or challenges.

ERG Theory

A theory in psychology proposed by Clayton Alderfer that categorizes human needs into three groups: existence, relatedness, and growth.