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Domestic corporation B owns 200 of the 400 outstanding shares of foreign corporation K's stock. U.S. citizen R owns the remaining K stock. The domestic corporation held the stock for 40 days two years ago, 365 days last year, and 80 days this year. None of K's income is Subpart F income. The foreign corporation has E&P of $50,000 for each of the three years in question. None of the years is a leap year. On the 80th day of the current year, the stock is sold by B to R in a transaction in which a $100,000 gain is recognized by B. What part of B's gain is capital gain?
World Price
The international market price at which goods are traded between countries; it plays a crucial role in determining local prices and trade policies.
Exported
Goods or services sent from one country to another for sale or trade.
Imported
Goods or services brought into one country from another for sale or use.
Producer Surplus
Producer surplus is the difference between what producers are willing to accept for a good or service and what they actually receive due to higher market prices.
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