According to U

question 64

Multiple Choice

According to U.S.tax law, if a foreign subsidiary earns income, ________.

• A)its income is immediately taxable to the parent, irrespective of the type of income earned
• B)that income is not taxable to the parent company as long as the subsidiary pays income taxes in the country where it is earned
• C)passive income is taxable to the parent unless the parent company is a controlled foreign corporation
• D)active income is taxable to the parent when it is remitted as a dividend

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Definitions:

Breach of Contract

A legal term referring to the violation of a binding agreement between two or more parties.

Contractual Duties

Obligations that parties must follow as outlined in a contract, enforceable by law.

Expected Utility

Expected utility theory represents how rational individuals with preferences choose among risky alternatives to maximize their satisfaction or utility.

Toll Road

A public or private roadway for which a fee is assessed for passage, commonly used to fund road maintenance or construction projects.