A Deferral Principle Specifies That Parent Companies Are Not Taxed

question 35

Multiple Choice

A deferral principle specifies that parent companies are not taxed on foreign source income until

• A) the subsidiary providing income makes some profit.
• B) they actually receive a dividend.
• C) they acquire a majority stake in the subsidiary.
• D) the subsidiary providing income is listed in the United States.

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Definitions:

Blood Flow

The continuous circulation of blood through the heart and blood vessels, delivering oxygen and nutrients to the body while removing waste products.

Heart Attack

medically known as myocardial infarction, is a cardiovascular condition characterized by the death of heart muscle due to the lack of blood supply.

Bone Density

Bone density refers to the amount of bone mineral in bone tissue, affecting its strength and the likelihood of fracture.

Lung Capacity

The total volume of air that the lungs can hold, which varies with age, fitness, and respiratory health.