Jokerz, a CFC of a U

question 81

True/False

Jokerz, a CFC of a U.S. parent, generated $80,000 Subpart F foreign base company services income in its first year of operations. The next year, Jokerz distributes $50,000 cash to the parent, from those service profits. The parent is taxed on $0 in the first year (tax deferral rules apply) and $50,000 in the second year.

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Definitions:

Classical Conditioning

The educational process of repeatedly pairing two stimuli; the reaction that initially starts with the second stimulus in time starts with the first stimulus exclusively.

Extinction

In psychology, extinction refers to the gradual weakening and eventual disappearance of a learned response when the reinforcement is no longer provided.

Operant Conditioning

A way of learning that involves changing the strength of a behavior using either supportive stimulants or corrective measures.

Shaping

A technique in operant conditioning that involves reinforcing behaviors that are increasingly closer to the desired behavior.