A Controlled Foreign Corporation (CFC)is Incorporated in Country B, and Is

question 9

Multiple Choice

A controlled foreign corporation (CFC) is incorporated in Country B, and is 100% owned by American Manufacturing Corporation. It purchases raw materials from its U.S. parent corporation, manufactures widgets, and sells 70% of the widgets to unrelated purchasers in Country A and 30% to unrelated purchasers in Country B. All widgets will be used in the countries in which they are purchased. The sales produce $100,000 of taxable income. The foreign-based company sales income reportable by American Manufacturing Corporation under the Subpart F rules is

• A)$0.
• B)$30,000.
• C)$70,000.
• D)$100,000.

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Definitions:

Biometrics

A method of identifying individuals based on physical or behavioral characteristics, used for security and access control.

Authenticate

The process of verifying the identity of a user or device, often as a security measure.

Fingerprints

Unique patterns found on the tips of human fingers, used for identification purposes due to their distinctiveness to each individual.

Intranet

A private network accessible only to an organization's staff, often containing company-specific tools and resources.