The Following Income of a Foreign Corporation Is Not Subject

question 109

Multiple Choice

The following income of a foreign corporation is not subject to the regular U.S. corporate income tax rates.

• A) Capital gains effectively connected with a U.S. trade or business.
• B) FIRPTA gains.
• C) Fixed, determinable, annual or periodic income effectively connected with a U.S. trade or business.
• D) Income from sale of inventory where title passes in the United States, but no U.S. trade or business exists.

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Definitions:

Multiple Parts

Consisting of several components, elements, or sections that contribute to a whole.

Adhesion

A contractual term referring to agreements that are not negotiable and are offered on a "take it or leave it" basis by one party to another.

Illusory

Something that is deceptive or not based in reality, often used in the context of contracts to describe terms that fail to bind the parties definitively.

Fine Print

The part of a document, often a contract or agreement, that contains important details and conditions, usually in smaller type.