Which of the Following Statements About Subpart F Income Is

question 78

Multiple Choice

Which of the following statements about subpart F income is false?

• A) Subpart F income is constructively repatriated to U.S. shareholders of a controlled foreign corporation (CFC) when earned.
• B) Subpart F income has no commercial or economic connection to the CFC's home country.
• C) Subpart F income includes income from the manufacture of goods in the CFC's home country.
• D) Subpart F income includes income from the purchase of goods from a related party that are subsequently sold to another related party for use outside the CFC's home country.

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Definitions:

Nullified

Made legally null and void; invalidated.

Withdraw

To remove oneself or an item from a particular situation or location, or to cease participation in an activity or membership.

Issue a Pardon

An executive act of granting forgiveness for a crime, typically by a governor or the president, which absolves the convict from serving the remainder of their sentence.

Impeachment

The formal process by which governmental officials can be accused and tried for misconduct, with possible removal from office upon conviction.