Which of the Following Items of Foreign Source Income Is

question 51

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 is classified as passive category income

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Definitions:

Legally Permissible

Activities or actions that are allowed or not prohibited by law.

Ever Arrested

Indicates whether an individual has been detained by law enforcement in the past.

Seeking Change

The process of actively pursuing modifications or improvements in personal, professional, or societal aspects.

Dissatisfying

Causing discontent or discomfort; not meeting an individual's expectations or desires.