Stanton Technology owns 100% of Goldman Corporation, a controlled foreign corporation. Goldmans taxable income from its manufacturing

Question:

Stanton Technology owns 100% of Goldman Corporation, a controlled foreign corporation. Goldman’s taxable income from its manufacturing operations is $3 million, and it does not pay a during the year. Goldman pays foreign taxes on its income at a marginal tax rate of 27%, while Stanton’s marginal tax rate is 34%. What is the tax treatment of Goldman’s income?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...