A Controlled Foreign Corporation (CFC)is Incorporated in Country B, and Is

question 9

Multiple Choice

A controlled foreign corporation (CFC) is incorporated in Country B, and is 100% owned by American Manufacturing Corporation. It purchases raw materials from its U.S. parent corporation, manufactures widgets, and sells 70% of the widgets to unrelated purchasers in Country A and 30% to unrelated purchasers in Country B. All widgets will be used in the countries in which they are purchased. The sales produce $100,000 of taxable income. The foreign-based company sales income reportable by American Manufacturing Corporation under the Subpart F rules is

• A)$0.
• B)$30,000.
• C)$70,000.
• D)$100,000.

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Definitions:

Water-seal Chest Drainage Unit (CDU)

A medical device used to remove air, pus, or fluid from the pleural space to prevent lung collapse, using a water seal to prevent backflow.

Hygiene Care

Practices aimed at maintaining cleanliness and promoting health through personal grooming and environmental cleanliness.

RSV

Respiratory Syncytial Virus, a common virus that causes respiratory infections, especially in young children.

Copious Airway Secretions

Refers to an excessive amount of mucus or fluids produced in the air passages, often seen in respiratory infections or conditions.