Which of the Following Transactions by a U

question 101

Multiple Choice

Which of the following transactions by a U.S.corporation may result in taxation under § 367?

• A)Incorporation of U.S branch as a U.S.corporation when the branch earns foreign-source income.
• B)Incorporation of a U.S.branch as a U.S.corporation if the new U.S.corporation also has foreign shareholders.
• C)Incorporation of a U.S.branch as a U.S.corporation if the new U.S.corporation has no foreign shareholders.
• D)All the above.
• E)None of the above.

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Definitions:

Self-Serving Bias

Tendency to perceive our own behavior as more positive than others’ behavior.

Fundamental Attribution Error

Error that arises from attributing another person’s behavior to internal, controllable causes rather than to external, uncontrollable causes.

Stereotype

To place a person or group of persons into an inflexible, all-encompassing category.

Stereotyping

The act of assigning a fixed, oversimplified image or idea to a person or group, often based on limited information and resulting in prejudiced attitudes or actions.