Dear Tutors,

I got the following questions wrong. Please explain your correct answers. Thanks!

Which of the following incomes earned by a controlled foreign corporation incorporated in Spain isnotforeign personal holding company income?

Question options:

Interest income received from a loan to an unrelated party.

Dividend income from a 5 percent investment in an unrelated corporation.

Rent received from a passive investment in an apartment complex. (wrong)

Gross profit from the manufacture and sale of inventory to an unrelated party.

Question 100 / 2 points

Before subpart F applies, a foreign corporation must be a CFC for how many consecutive days?

Question options:

1

30 (wrong)

183

365

Chapter 14

Question 140 / 2 points

Which of the following statements is (are) true?

Question options:

The same transfer tax rate schedule is used to calculate both the estate tax and the gift tax.

The transfer tax rate schedule is regressive in nature.

The amount of the applicable credit varies according to whether the taxable transfer is inter vivos or testamentary.

The exemption equivalent automatically offsets transfers in calculating cumulative taxable transfers. (wrong)

All of the choices are true.

Question 160 / 2 points

The estate and gift taxes share several common features. Which of the following characteristics is common to both the estate and gift taxes?

Question options:

A marital deduction and a deduction for casualty losses.

A marital deduction for transfers of all terminable interests.

The tax rate schedule for calculating gross transfer taxes.

A charitable deduction and an annual exclusion.

None of these choices list characteristics common to both the gift and the estate tax. (wrong)

Question 190 / 2 points

Which of the following transactions would not utilize the "Section 7520 rate" to calculate the value of the transfer?

Question options:

A transfer of property with a retained life estate. (wrong)

A transfer of property to a spouse.

A transfer of a remainder interest in real property.

A transfer of a 10-year term certain in real property.

None of these choices utilizes the "Section 7520 rate" in the calculation of the value of the property.