Jokerz, a CFC of a U

question 81

True/False

Jokerz, a CFC of a U.S. parent, generated $80,000 Subpart F foreign base company services income in its first year of operations. The next year, Jokerz distributes $50,000 cash to the parent, from those service profits. The parent is taxed on $0 in the first year (tax deferral rules apply) and $50,000 in the second year.

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Definitions:

ROM

Read-Only Memory, a type of storage medium that is used to store firmwares that are seldom changed during the life of the system.

RAM

Volatile memory in computing that is used to store data temporarily while a computer is running, facilitating quick access by the processor.

Libraries

Collections of resources or data in computing, used for storing files, documents, or code libraries in organized manners for easy access and management.

Active Window

The currently focused window on a computer screen, which receives the input from the keyboard and mouse.