Waldo,Inc,A U

question 58

Multiple Choice

Waldo,Inc.,a U.S.corporation,owns 100% of Orion,Ltd.,a foreign corporation.Orion earns only general basket income.During the current year,Orion paid Waldo a $5,000 dividend.The foreign tax credit associated with this dividend is $3,000.The foreign jurisdiction requires a withholding tax of 10%,so Waldo received only $4,500 in cash as a result of the dividend.What is Waldo's total U.S.gross income reported as a result of the $4,500 cash received?

• A)$8,000
• B)$5,000
• C)$4,500
• D)$3,000

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Definitions:

Suggestibility

The degree to which an individual's beliefs, perceptions, or memories can be influenced by external factors such as ideas or misinformation.

Memory Sin

Errors or distortions in the recall of memories, often categorized into specific types such as transience, absent-mindedness, or misattribution.

Misattribution

Misattribution occurs when a memory or idea is mistakenly assigned to the wrong source, often resulting in false or altered memories.

Commission

An instruction, command, or duty given to a person or group of people.