Which of the Following Statements Is True, Regarding the Sourcing

question 138

Multiple Choice

Which of the following statements is true, regarding the sourcing of dividend income?

• A) Dividends are sourced based on the residence of the recipient.
• B) Dividends from a U.S. corporation are U.S.-source based on the percentage of U.S.-source income earned by the U.S. payor.
• C) Dividends from a U.S. corporation are U.S. source, without regard to where the U.S. corporation generated the E & P.
• D) Dividends from a U.S. corporation are foreign-source based on the percentage of foreign-source income earned by the U.S. payor.