Windmill Corporation, a Dutch Corporation, Is Owned by the Following

question 37

Multiple Choice

Windmill Corporation, a Dutch corporation, is owned by the following unrelated persons: 50 percent by a U.S. corporation, 5 percent by a U.S. individual, and 45 percent by a Swiss corporation. During the year, Windmill earned $2,000,000 of subpart F income. Which of the following statements is true about the application of subpart F to the income earned by Windmill?

• A)Windmill is a CFC and the U.S. corporation and U.S. individual will have a deemed dividend of $1,000,000 and $100,000, respectively.
• B)Windmill is a CFC and only the U.S. corporation will have a deemed dividend of $1,000,000.
• C)Windmill is a CFC and the U.S. corporation, U.S. individual, and Swiss corporation will have a deemed dividend of $1,500,000, $100,000, and $900,000, respectively.
• D)Windmill is not a CFC and none of the shareholders will have a deemed dividend under subpart F.

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Definitions:

Medication Abbreviations

Shortened forms of words or phrases used to specify drugs, dosages, and other medication-related information.

Joint Commission

An independent, non-profit organization that accredits and certifies healthcare organizations and programs in the United States to ensure compliance with specific performance standards.

Nursing Documentation

The detailed recording of information pertaining to the care given to patients by nurses, including assessments, interventions, and outcomes.

Otic Medications

Medications specifically formulated for administration in the ear, used to treat various ear conditions.