A Controlled Foreign Corporation (CFC) Realizes Subpart F Income From

question 93

Multiple Choice

A controlled foreign corporation (CFC) realizes Subpart F income from:

• A)Purchase of inventory from unrelated party and sale outside the CFC country.
• B)Purchase of inventory from a related party and sale outside the CFC country.
• C)Services performed for the U.S.parent in a country in which the CFC was organized.
• D)Services performed on behalf of an unrelated party in a country outside the country in which the CFC was organized.
• E)None of the above transactions.

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Definitions:

Acceptance

The act of agreeing to the terms of an offer, thereby forming a contract.

Offer

A tentative promise to do something if another party consents to do what the first party requests.

Telephone

A telecommunications device that allows two or more users to conduct a conversation when they are too far apart to be heard directly.

Invitation To Treat

An Invitation to Treat is a legal expression signaling the initiation of negotiations, inviting offers which can then be accepted or rejected by the party issuing the invitation.