A US-Based Multinational Parent Corporation Owns 75 Percent of a Mexican

question 32

Multiple Choice

A U.S.-based multinational parent corporation owns 75 percent of a Mexican corporation.The Mexican corporation owns 100 percent of a Panamanian company.Panama is a tax-haven country.The Panamanian company is a controlled foreign corporation (CFC) and all of its $250,000 income is Subpart F income.If none of the companies paid dividends, how much dividend income must the U.S.-based parent recognize?

• A)$187,500
• B)$150,000
• C)$100,000
• D)$25,000

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Definitions:

Positive Instrumentality

the belief that performing well will lead to the attainment of desired outcomes or rewards.

Self-efficacy Theory

A psychological concept suggesting that an individual's belief in their ability to perform tasks leads to better performance and outcomes.

Social Learning Theory

A theory that posits individuals learn new behaviors and attitudes through observation of others and interactions within their social context.

Alderfer's ERG Theory

A human needs theory in organizational behavior that categorizes human needs into three groups: Existence, Relatedness, and Growth.