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:

Formation

The creation or development of something into a particular shape or structure.

Inflammation

A biological response to harmful stimuli, marked by redness, swelling, pain, and heat in the affected tissues.

Pathogenic Infection

An invasion of the body by microorganisms that cause disease.

Cervical Curve

The natural curvature of the cervical spine (neck) that forms a slight inward C-shape, or lordosis.