A controlled foreign corporation (CFC) is incorporated in Country B, and is 100% owned by American Manufacturing Corporation. It purchases raw materials from its U.S. parent corporation, manufactures widgets, and sells 70% of the widgets to unrelated purchasers in Country A and 30% to unrelated purchasers in Country B. All widgets will be used in the countries in which they are purchased. The sales produce $100,000 of taxable income. The foreign-based company sales income reportable by American Manufacturing Corporation under the Subpart F rules is
A. $0.
B. $70,000.
C. $30,000.
D. $100,000.
Answer: A
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Under the indirect method, a loss on the sale of equipment should be:
A. a source of funds in the financing activities. B. a source of funds in the investing activities. C. added back to net income to arrive at cash flow from operating activities. D. subtracted from net income to arrive at cash flow from operating activities.
Whirlpool conducts usability studies that provide insight into the ways consumers interact with its products
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What is of utmost importance that a manager first do when a 360-degree- performance appraisal process uncovers unethical behavior on the part of the employee?
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At the end of the fiscal year, the balance in factory overhead is small. This balance would normally be ________
a. transferred to finished goods b. transferred to cost of goods sold c. allocated between work in process and finished goods d. allocated among work in process, finished goods, and cost of goods sold