OutCo, a Controlled Foreign Corporation in Meena, Earns $600,000 in Net

question 138

Multiple Choice

OutCo, a controlled foreign corporation in Meena, earns $600,000 in net interest and dividend income from investments in the bonds and stock of unrelated companies.All of the dividend payors are located in Meena.OutCo's Subpart F income for the year is:

• A)$0.
• B)$0 only if OutCo is engaged in a trade or business in Meena.
• C)$600,000.
• D)$600,000 only if OutCo is engaged in a trade or business in Meena.

---

Definitions:

Amended

Officially modified, edited, or revised typically referring to documents, laws, or agreements to bring them up to date or improve them.

Annapolis Convention

A convention held in 1786 to address weaknesses in the Articles of Confederation that led to the drafting of the U.S. Constitution.

Delegates

Representatives who are chosen or elected to attend and vote at a conference or convention on behalf of a group.

Three-Fifths Compromise

An agreement made during the 1787 United States Constitutional Convention that counted three out of every five slaves as a person for the purposes of taxation and representation in Congress.