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

question 41

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-base 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:

Mesophyll

The inner tissue of a leaf, containing many chloroplasts, where photosynthesis occurs.

Palisade

in plant biology refers to the layer of closely packed cells in the leaves of plants where photosynthesis predominantly takes place.

Spongy Layers

Part of a plant's leaves, specifically within the mesophyll, that consists of loosely arranged cells with spaces between them for gas exchange.

Parallel Venation

A pattern of plant leaf venation where veins run parallel to each other along the length of the leaf, common in plants like grasses.