Which of the Following Items of Foreign Source Income Is

question 71

Multiple Choice

Which of the following items of foreign source income is classified as passive category income for foreign tax credit purposes?

• A) Dividend received from a 5 percent owned foreign corporation, all of the income of which is derived from an active business.
• B) Dividend received from a 20 percent owned foreign corporation, all of the income of which is derived from an active business.
• C) Dividend received from a 100 percent owned foreign corporation, all of the income of which is derived from an active business.
• D) None of the dividends in the scenarios listed above are classified as passive category income.

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Definitions:

Gonorrhea

A sexually transmitted infection caused by the Neisseria gonorrhoeae bacterium.

Heterosexual

Attraction to and sexual relations between individuals of the opposite sex.

Gamete

A mature haploid male or female germ cell that is able to unite with another of the opposite sex in sexual reproduction to form a zygote.

Condom

A contraceptive device usually made of latex or polyurethane, worn on the penis or inserted into the vagina to prevent pregnancy and reduce the risk of sexually transmitted infections.