Domestic Corporation X Owns All the Stock of Controlled Foreign

question 17

Multiple Choice

Domestic corporation X owns all the stock of controlled foreign corporation (CFC) T.X's acquisition cost for the CFC investment is $150,000.The CFC reports E&P of $200,000 since the domestic corporation acquired its interest,of which $120,000 was Subpart F income.The CFC makes a cash distribution of $90,000 to the domestic corporation.What is the domestic corporation's basis for its investment in T immediately after the cash distribution?

• A)$150,000
• B)$180,000
• C)$230,000
• D)none of the above

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Definitions:

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Individuals seeking psychological help who are experiencing prolonged feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

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Unfavorable outcomes or penalties that result from an action or decision.

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Relating to the mental processes involved in acquiring knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

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