Identify Which of the Following Statements Is True

question 48

Multiple Choice

Identify which of the following statements is true.

• A)For a foreign corporation to be a controlled foreign corporation (CFC), more than 40% of its voting stock, or more than 40% of the value of its outstanding stock, must be owned by U.S. shareholders on any day of the corporation's tax year.
• B)Under the Subpart F rules, controlled foreign corporations (CFCs)are required to distribute a certain portion of their income as dividends to their U.S. shareholders.
• C)When a controlled foreign corporation (CFC)earns Subpart F income, such income is considered to be a constructive distribution to the CFC's U.S. shareholders on the last day of the CFC's tax year, or the last day on which CFC status is retained.
• D)All of the above are true.

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Definitions:

Body

The main content or central part of a written document, speech, or work of art.

Problem/Purpose

Identifies the issue to be addressed or resolved and the intention behind an action or study.

Opportunity

A set of circumstances that makes it possible to do something or for something to happen; potential for advancement or progress.

Proposal

A formal offer or plan put forward for consideration or acceptance, typically in business or academic contexts.