OutCo, a Controlled Foreign Corporation in Meena (Located Outside the United

question 16

Multiple Choice

OutCo, a controlled foreign corporation in Meena (located outside the United States) , earns $600,000 in net interest and dividend income from investments in the bonds and stock of unrelated companies. All of the dividend payors are located in Meena. OutCo's Subpart F income for the year is:

• A) $0.
• B) $0 only if OutCo is engaged in a trade or business in Meena.
• C) $600,000.
• D) $600,000 only if OutCo is engaged in a trade or business in Meena.

---

Definitions:

Stock Chart

A graphical representation of a stock's price movements over a period of time.

Surface Chart

A graphical representation of three-dimensional data where the color and patterns of the surface vary according to the values being plotted.

House Size

A measurement generally referring to the total living area or square footage of a residential building.

Home Market Value

The estimated price at which a home would sell under current market conditions.