ForCo, a Foreign Corporation Not Engaged in a U

question 82

Multiple Choice

ForCo, a foreign corporation not engaged in a U.S. trade or business, recognizes a $3 million gain from the sale of land located in the United States. The amount realized on the sale was $50 million. Absent any exceptions, what is the required withholding amount on the part of the purchaser of this land?

• A) $0
• B) $300,000
• C) $3 million
• D) $5 million

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Definitions:

Demand Legitimacy

The perceived appropriateness and justification of a demand or request made by stakeholders based on societal norms and values.

Stakeholders

Individuals or groups with an interest or concern in the success of an organization, project, or endeavor, including employees, customers, investors, and the community.

Operations

The day-to-day activities and processes undertaken by a business to produce goods or provide services efficiently and effectively.

Legal Responsibility

The obligation to act according to the law, being subject to legal penalties or liabilities for failing to do so.