A Controlled Foreign Corporation (CFC) Realizes Subpart F Income From

question 93

Multiple Choice

A controlled foreign corporation (CFC) realizes Subpart F income from:

• A)Purchase of inventory from unrelated party and sale outside the CFC country.
• B)Purchase of inventory from a related party and sale outside the CFC country.
• C)Services performed for the U.S.parent in a country in which the CFC was organized.
• D)Services performed on behalf of an unrelated party in a country outside the country in which the CFC was organized.
• E)None of the above transactions.

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Definitions:

Output Producers

Businesses or individuals that create goods or services for consumption.

Aggregate Demand Curve

A graphical representation showing the total demand for goods and services within a particular economy at different price levels.

Goods and Services

The output of an economy that includes both physical products and intangible activities offered for consumption.

Coincident Economic Indicator

An economic statistic that changes at the same time as the economy or stock market, providing insight into the current state of economic activity.