Identify Which of the Following Statements Is True

question 12

Multiple Choice

Identify which of the following statements is true.

• A)Foreign-based company sales income is earned when personal property is purchased by a Country X controlled foreign corporation (CFC)from its U.S. parent corporation and is sold to unrelated persons in Country Z.
• B)Section 482 permits the IRS to restructure transactions between related parties as if the transactions were conducted at arm's length.
• C)One tax avoidance practice which Sec. 482 attempts to prevent is the transfer of tangible property to a foreign subsidiary at a price which is below the arm's-length price that would be used by unrelated parties.
• D)All of the above are true.

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Definitions:

Indifferent

Showing no particular interest or concern; apathetic or uninterested.

Ayn Rand

A Russian-American novelist and philosopher known for her philosophy of Objectivism and her novels advocating individualism and capitalism.

Theory

A logical explanation or framework for understanding how various aspects of the world relate to each other.

Forms

The visible shapes, structures, or configurations that objects or concepts can take, often used to classify or understand things in various contexts.