Which of the Following Statements About the Deemed Paid Foreign

question 71

Multiple Choice

Which of the following statements about the deemed paid foreign tax credit is false?

• A)If a U.S.corporation owns 10% or more of the voting stock of a foreign corporation,the U.S.corporation is entitled to a deemed paid foreign tax credit.
• B)When claiming a deemed paid foreign tax credit,a U.S.corporation reports dividend income equal to the dividend received grossed up by the foreign tax paid with respect to the dividend.
• C)A deemed paid foreign tax credit is allowed for foreign taxes paid by a domestic subsidiary of a U.S.multinational corporation.
• D)A deemed paid foreign tax credit is subject to the foreign tax credit limitation.

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Definitions:

Big Five Model

A rephrasing of Big Five Trait; it is a psychological model that classifies human personality into five major dimensions for better understanding and assessment.

Surgency

A personality trait characterized by leadership qualities, including assertiveness, dominance, and the ability to influence others.

Intellectance

The ability or aptitude to learn, understand, and engage in complex cognitive processes.

Honesty

The quality of being truthful, transparent, and sincere in one's dealings and communications.