Which of the Following Items of Foreign Source Income Is

question 51

Multiple Choice

Which of the following items of foreign source income is classified as passive category income for foreign tax credit purposes?

• A)Dividend received from a 5 percent owned foreign corporation, all of the income of which is derived from an active business.
• B)Dividend received from a 20 percent owned foreign corporation, all of the income of which is derived from an active business.
• C)Dividend received from a 100 percent owned foreign corporation, all of the income of which is derived from an active business.
• D)None of the dividends in the scenarios listed here are classified as passive category income.

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Definitions:

Bees

Flying insects known for their role in pollination and, for many species, the production of honey.

Gametophyte Generation

The stage in a plant's life cycle that produces gametes (sex cells), alternating with the sporophyte generation in the cycle of alternation of generations.

Angiosperms

Flowering plants that produce seeds enclosed within a fruit, the largest and most diverse group in the plant kingdom.

Ovule

The structure in the plant ovary that develops into the seed following fertilization; also called megasporangium.