Which of the following persons should not be treated as a "U.S. shareholder" of a controlled foreign corporation (CFC) for subpart F purposes?
A. A U.S. citizen owning 5 percent of the CFC.
B. A U.S. corporation owning 15 percent of the CFC.
C. A U.S. citizen owning 15 percent of the CFC.
D. All of the named persons are U.S. shareholders for subpart F purposes.
Answer: A
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If a business lacks insight or fails to use the adaptive cycle properly, it is likely to be which of the following?
A. A prospector B. An analyzer C. A defender D. A reactor E. An imitator
The cash and investment pool of Lake City allocates dividends, interest, and capital gains and losses on a periodic basis. When the cash and investment pool accrues interest earned on investments in debt securities, pending allocation to participating funds, it would credit which of the following accounts?
A. Revenues. B. Interfund Receivables. C. Undistributed Earnings on Pooled Investments. D. Interfund Loans.
All of the following are criteria that financial reporting requires before recognizing an obligation as a liability except:
a. The transaction or event that gave rise to the obligation has already occurred. b. The firm has a present obligation and little or no discretion to avoid the transfer. c. The firm must know the precise amount of the obligation before recording it. d. The obligation involves a probable future sacrifice of economic benefits–a future transfer of cash, goods, or services; the forgoing of a future cash receipt; or the transfer of equity shares–at a specified or determinable date. The firm can measure with reasonable precision the cash-equivalent value of the resources needed to satisfy the obligation.
According to good internal control policies, a person who controls an asset also maintains that asset's accounting records.
Answer the following statement true (T) or false (F)