A Passive Foreign Investment Company (PFIC) is a foreign corporation where :at least 75% of its gross income is "passive" and at least 50% of its assets produce "passive" income.

True

False

Which of the following tax treatments of PFICs require an election on form 8621?

I.Qualified Electing Fund

II.Mark-to-market

III.Excess distribution

IV.FIFO

a.I & II

b.I & III

c.I, II, III, & IV

d.I, II, & III

If the disposition of a foreign-currency-denominated debt instrument consists of both loss on currency exchange and overall economic loss, the recognized taxable loss will be characterized as ordinary up to the amount of the exchange loss and the remainder will be capital loss.

True

False

Gain or loss on a foreign-currency-denominated debt instrument will always include ordinary income under IRC Sec. 988 in connection with the component of its exchange gain or loss.

True

False