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:

Specified Act

An action precisely described or defined within a legal document or law.

Executory

Describes a contract or lease that has not yet been fully performed or completed by all parties involved.

Formal

Adhering to established conventions or requirements; official.

Purchase Price

The amount of money paid to buy goods, services, or assets.