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:

Cis-Trans Isomers

Molecules with the same formula and order of atomic connections but differing in the spatial orientation of their atoms or groups across a double bond or ring structure.

Alkenes

Hydrocarbons containing at least one carbon-carbon double bond, with general formula CnH2n.

IUPAC Name

The methodical labeling of chemical substances as suggested by the International Union of Pure and Applied Chemistry, to guarantee uniformity and clear understanding in the naming of chemicals.

Alkene

Hydrocarbons characterized by the presence of at least one double bond within the molecule, contributing to their chemical reactivity.