Which of the Following Items of CFC Income Constitute Foreign

question 30

Multiple Choice

Which of the following items of CFC income constitute foreign base company sales income?

• A) Sale of inventory property purchased from the CFC's U.S. parent company and sold to related parties within the CFC's country of incorporation.
• B) Sale of inventory property purchased from the CFC's U.S. parent company and sold to unrelated parties within the CFC's country of incorporation.
• C) Sale of inventory property purchased from the CFC's U.S. parent company and sold to related parties outside the CFC's country of incorporation.
• D) Sale of inventory property purchased from unrelated parties and sold to related parties within the CFC's country of incorporation.

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Definitions:

Cash Dividend

A disbursement by a company to its stockholders, typically coming from earnings.

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee and make major decisions regarding the company's affairs.

Market Value

Market value is the current price at which an asset or service can be bought or sold in the open market.

Sufficient Cash

A condition where a company has enough liquid funds to meet its immediate and short-term obligations.