USCo,a UScorporation,reports Worldwide Taxable Income of $1,500,000,including a $300,000 Dividend from from ForCo,a

question 96

Multiple Choice

USCo,a U.S.corporation,reports worldwide taxable income of $1,500,000,including a $300,000 dividend from ForCo,a wholly-owned foreign corporation.ForCo's undistributed earnings and profits are $15 million and it has paid $10 million of foreign income taxes attributable to these earnings.What is USCo's deemed paid foreign tax credit related to the dividend received (before consideration of any limitation) ?

• A)$200,000
• B)$300,000
• C)$10 million
• D)$15 million

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Definitions:

Reaction Formation

A defense mechanism where an individual unconsciously replaces unacceptable impulses with their opposites.

Forbidden Impulse

A desire or thought that is repressed or deemed unacceptable by societal standards or personal conscience, often explored in psychoanalytic theories.

Displacement

A redirection of an impulse from a channel that is blocked into another, more available outlet.

Psychosexual Stages

A theory proposed by Freud describing how personality develops through five stages (oral, anal, phallic, latency, genital) centered on erogenous zones.