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:

Immune Response

The body's defensive reaction to foreign substances or pathogens, involving immune cells and antibodies.

Tiredness

A state of fatigue or exhaustion that results from physical or mental exertion.

Pale Appearance

A physical condition where the skin appears lighter or less colorful than normal, often an indicator of illness or distress.