ForCo,a Controlled Foreign Corporation,earns $500,000 in Net Interest and Dividend

question 48

Multiple Choice

ForCo,a controlled foreign corporation,earns $500,000 in net interest and dividend income from investments in the bonds and stock of unrelated companies.All of the unrelated companies are located in ForCo's country of incorporation.ForCo's Subpart F income for the year is:

• A)$0.
• B)$500,000.
• C)$500,000 only if ForCo is engaged in a trade or business in its home country.
• D)$500,000 only if ForCo is not engaged in a trade or business in its home country.

---

Definitions:

Passive Transport

The movement of ions and other molecular substances across cell membranes without the need for energy input.

Sieve Elements

Specialized cells in the phloem of vascular plants that are involved in the transport of sugars and nutrients.

Sink Cells

Cells that act as a metabolic or storage sink, usually absorbing and storing nutrients transported from source cells in an organism.

Source Cells

Cells that provide or have the potential to provide necessary components or functions for repair or growth, often referring to stem cells.