Which of the Following Statements Is True, Regarding the Sourcing

question 89

Multiple Choice

Which of the following statements is true, regarding the sourcing of dividend income?

• A) Dividends are sourced based on the residence of the recipient.
• B) Dividends from non-U.S. corporations are always foreign source.
• C) Dividends from non-U.S. corporations are foreign-source only to the extent that 80% or more of the non-U.S. corporation's gross income for the 3 years preceding the year of the dividend payment was effectively connected with the conduct of a non-U.S. trade or business.
• D) A percentage of dividends from non-U.S. corporations are U.S. source to the extent that 25% or more of the non-U.S. corporation's gross income for the 3 years preceding the year of the dividend payment was effectively connected with the conduct of a U.S. trade or business.

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Definitions:

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Independent Variable

In research, a variable that is manipulated or changed to observe its effects on a dependent variable.

Experimental Method

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Independent Variable

The variable in an experiment that is manipulated to observe its effect on a dependent variable.