Which of the Following Transactions by a U

question 17

Multiple Choice

Which of the following transactions by a U.S.corporation may result in taxation under § 367.

• A)Incorporation of U.S branch as a U.S.corporation when the branch earns foreign-source income.
• B)Incorporation of a U.S.branch as a U.S.corporation if the new U.S.corporation has no foreign shareholders.
• C)Incorporation of a U.S.branch as a U.S.corporation if the new U.S.corporation also has foreign shareholders.
• D)All the above.
• E)None of the above.

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Definitions:

Break-even Point

The point at which total costs and total income are equal, so there is no loss or gain, and the business is just covering all its costs with its sales revenue.