All of the Following Foreign Corporations Derive More Than 50

question 24

Multiple Choice

All of the following foreign corporations derive more than 50 percent of their income from subpart F income. Which of them must recognize the subpart F income in the year in which it is earned? The percentage ownership of each shareholder is provided in parenthesis.

• A) U.S. shareholder A (10), Foreign shareholder B (20), U.S. shareholder C (35), U.S. shareholder D (5), Foreign shareholder E (15), U.S. shareholder F (15)
• B) U.S. shareholder A (5), Foreign shareholder B (40), U.S. shareholder C (15), U.S. shareholder D (15), Foreign shareholder E (10), U.S. shareholder F (15)
• C) U.S. shareholder A (50), Foreign shareholder B (20), U.S. shareholder C (5), U.S. shareholder D (5), Foreign shareholder E (15), U.S. shareholder F (5)
• D) all of the above since subpart F income exceeds 50 percent of total.

---

Definitions:

Over-The-Counter

Refers to medicines and products available without a prescription, accessible directly from stores.

Geriatric Depression Scale

A screening tool specifically designed to identify depression in elderly populations through a questionnaire format.

Moderate-To-Severe Pain

A level of pain intensity that significantly impacts an individual's daily activities and requires professional management.

Alcohol Addiction

A chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol despite adverse consequences.