The Following Income of a Foreign Corporation Is Not Subject

question 89

Multiple Choice

The following income of a foreign corporation is not subject to the regular U.S. corporate income tax rates.

• A) FIRPTA gains.
• B) Capital gains effectively connected with a U.S. trade or business.
• C) Net long-term capital gains for which no U.S. trade or business exists.
• D) Interest income effectively connected with a U.S. trade or business.

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Definitions:

Fixed-Count

Refers to a situation or a loop where the number of iterations is predetermined and does not change during its execution.

Tested Condition

A Boolean expression evaluated in control structures like if statements and loops to control the flow of execution based on its truthfulness.

Posttest Loop

A loop that executes its body at least once before checking its condition at the end of each iteration.

Condition-Controlled

A loop that executes as long as a specific condition remains true.