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DC, a domestic corporation, is a wholly-owned subsidiary of FC, a foreign corporation. During the current year, DC distributes a dividend of $100,000 to FC
DC, a domestic corporation, is a wholly-owned subsidiary of FC, a foreign corporation. During the current year, DC distributes a dividend of $100,000 to FC and makes an interest payment of $100,000 to FC. Assume the Model Treaty applies. Under the Model Treaty, DC must withhold total U.S. taxes of
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