All Passive Income Earned by a CFC Will Be Treated

question 34

True/False

All passive income earned by a CFC will be treated as foreign personal holding company income under subpart F for U.S. tax purposes.
F.

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Definitions:

Noncash Investing

Transactions that involve the acquisition or disposal of non-cash assets, such as property, plant, and equipment, through means other than cash payments.

Operating Activities

Activities directly related to the business's primary operations, such as manufacturing, distributing, marketing, and selling a product or service.

Gain

The profit realized from the sale of assets or investments when the selling price exceeds the purchase price.

Indirect Method

A way of reporting cash flows from operating activities that begins with net income and adjusts for changes in balance sheet accounts to calculate cash provided by operations.