Question 1 of 4 2 Points USAco, a domestic corporation, owns 100% of FORco, a country F corporation. 80% of FORco's gross income for the taxable year is passive income and the average market value of FORco's passive assets during the taxable year is 40% of the corporation's total assets. FORco is a Passive Foreign Investment Company ("PFIC") because it meets which test(s)? O A. The income test O B. The asset test O C. Both the income and asset test OD. Neither, it's not a PFIC Reset Selection Question 2 of 4 2 Points To transition to the "semi"-territorial tax system, which allows for tax-free repatriations of distributed future foreign profits, a one-time repatriation tax is imposed on U.S. taxpayers' previously deferred offshore earnings. For corporate 10% U.S. shareholders, this one-time deemed repatriation tax is imposed at a: O A. 21% rate on earnings held in cash and an 10.5% rate on earnings held otherwise. OB. 10.5% rate on earnings held in cash and an 21% rate on earnings held otherwise. O C. 15.5% rate on earnings held in cash and an 8% rate on earnings held otherwise. O D. 8% rate on earnings held in cash and an 15.5% rate on earnings held otherwise. Reset Selection