Performance,Inc

question 123

Multiple Choice

Performance,Inc. ,a U.S.corporation,owns 100% of Krumb,Ltd. ,a foreign corporation.Krumb earns only general limitation income.During the current year,Krumb paid Performance a $200,000 dividend.The § 902 credit associated with this dividend is $30,000.The foreign jurisdiction requires a withholding tax of 30%,so Performance received only $140,000 in cash as a result of the dividend.What is Performance's total U.S.gross income reported as a result of the $140,000 cash dividend received?

• A)$0.
• B)$80,000.
• C)$140,000.
• D)$230,000.

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Definitions:

Board of Directors

A group of individuals elected by shareholders to oversee the management and make key decisions for a corporation.

Liability

Refers to legal responsibility for one's actions or omissions, typically resulting in the obligation to pay damages or compensation.

Authorized

Officially given permission or power to do something or to act in a certain capacity.

Implied Authority

Authority that is created not by an explicit oral or written agreement but by implication or inference. In agency law, implied authority of the agent can arise from custom, from the position the agent occupies, or from being reasonably necessary to carry out express authority.