ForCo,a Controlled Foreign Corporation,earns $500,000 in Net Interest and Dividend

question 106

Multiple Choice

ForCo,a controlled foreign corporation,earns $500,000 in net interest and dividend income from investments in the bonds and stock of unrelated companies.All the unrelated companies are located in ForCo's country of incorporation.ForCo's Subpart F income for the year is:

• A)$0.
• B)$500,000.
• C)$500,000 only if ForCo is engaged in a trade or business in its home country.
• D)$500,000 only if ForCo is not engaged in a trade or business in its home country.
• E)None of the above.

---

Definitions:

Hookworms

Parasitic nematodes that live in the small intestine of their hosts, potentially causing anemia and other health issues through blood loss at the site of attachment.

Pinworms

Small, parasitic worms that primarily infect the intestines, often causing itching around the anus.

Tapeworms

Parasitic flatworms that live in the digestive tracts of vertebrates, including humans, potentially causing various health issues depending on the species.

Dormant

In a state of inactivity or dormancy, not currently active but with the potential to become active.