USCorporation Owns 45% of the Stock of Foreign Corporation

question 64

Multiple Choice

U.S.Corporation owns 45% of the stock of Foreign Corporation.Foreign Corporation is incorporated in Country T.In its first year of operations,Foreign Corporation earns 100,000 frugs of E&P,pays a 20,000- frug dividend to U.S.Corporation,and pays 5,000 frugs in income taxes.The exchange rate between the dollar and the frug is: first year average,1 frug = $0.20; yearend,1 frug = $0.25) ; tax payment date,1 frug = $0.30; and dividend payment date,1 frug = $0.28.What is the translated foreign tax amount attributable to the dividend for deemed paid foreign tax credit purposes?

• A)$200.00
• B)$250.00
• C)$300.00
• D)$280.00

---

Definitions:

Customer Segments

The division of a market into distinct groups of buyers based on different needs, characteristics, or behaviors.

Functional Groupings

the organization of objects, tasks, or responsibilities based on their purpose or similarity in function.

Staff Positions

Roles within an organization that support the line or primary activities, often involved in administrative, advisory, or strategic planning functions.

Authority

The power or right to give orders, make decisions, and enforce obedience within an organizational or societal structure.