Performance,Inc

question 144

Multiple Choice

Performance,Inc.,a U.S.corporation,owns 100% of Krumb,Ltd.,a foreign corporation.Krumb earns only general basket income.During the current year,Krumb paid Performance a $200,000 dividend.The foreign tax credit associated with this dividend is $30,000.The foreign jurisdiction requires a withholding tax of 30%,so Performance received only $140,000 in cash as a result of the dividend.What is Performance's total U.S.gross income reported as a result of the $140,000 cash received?

• A)$30,000
• B)$140,000
• C)$200,000
• D)$230,000

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Definitions:

Oceanic Trench

Deep and narrow depressions in the ocean floor, formed by the subduction of one tectonic plate under another.

Mountain Belt

A series of mountain ranges connected over a large area, formed through processes like tectonic plate collision and volcanic activity.

Island Arc

A curved series of volcanic islands located at a tectonic plate boundary, typically formed above a subducting plate.

Convergent Plate Boundary

A region where two tectonic plates move towards each other, often causing earthquakes and forming mountains.