Performance,Inc

question 144

Multiple Choice

Performance,Inc.,a U.S.corporation,owns 100% of Krumb,Ltd.,a foreign corporation.Krumb earns only general basket income.During the current year,Krumb paid Performance a $200,000 dividend.The foreign tax credit associated with this dividend is $30,000.The foreign jurisdiction requires a withholding tax of 30%,so Performance received only $140,000 in cash as a result of the dividend.What is Performance's total U.S.gross income reported as a result of the $140,000 cash received?

• A)$30,000
• B)$140,000
• C)$200,000
• D)$230,000

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Definitions:

Poised

Exhibiting a composed or balanced state that reflects grace, calmness, and confidence, especially in the face of stress or uncertainty.

Early-Maturing Boys

Young males who experience physical and hormonal puberty changes earlier than the average age range for their peer group, affecting them both psychologically and socially.

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The damaging or dangerous consumption of mind-altering substances, such as alcohol and illegal drugs.

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