Which of the Following Statements Best Describes the Operation of Subpart

question 95

Multiple Choice

Which of the following statements best describes the operation of subpart F as it applies to income earned by a foreign corporation?

• A)Subpart F causes all income of a controlled foreign corporation to be treated as a deemed dividend to all U.S. persons owning stock in the corporation on the last day of the corporation's tax year.
• B)Subpart F causes certain income of a controlled foreign corporation to be treated as a deemed dividend to all U.S. persons owning stock in the corporation on the last day of the corporation's tax year.
• C)Subpart F causes certain income of a controlled foreign corporation to be treated as a deemed dividend to only those U.S. shareholders owning stock in the corporation on the last day of the corporation's tax year.
• D)Subpart F causes all income of a controlled foreign corporation to be treated as a deemed dividend to only those U.S. shareholders owning stock in the corporation on the last day of the corporation's tax year.

---

Definitions:

Marx's Analysis

A theoretical approach developed by Karl Marx that focuses on class struggle, the dynamics of capitalist societies, and the relations between labor and capital.

Ruling Class

refers to the social class that holds the majority of political power and wealth in a society, often making decisions that affect the structure of the community.

Material Class

A grouping of individuals based on their economic position in society, often determined by their access to resources and wealth.

Conflict Theorists

refer to sociologists who emphasize the role of power and coercion in producing social order.