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Question 24 A Passive Foreign Investment Company incurs the below activity in 20x1: Interest income: $100 Dividend income: $75 Interest expense: $75 Operating expense: $125

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Question 24 A Passive Foreign Investment Company incurs the below activity in 20x1: Interest income: $100 Dividend income: $75 Interest expense: $75 Operating expense: $125 Unrealized gain: $100 Assuming that a shareholder of this PFIC makes a QEF election in 20x1, how much taxable income will he/she recognize? $75 PFIC ordinary income a. $0 b. Oc. $375 PFIC ordinary income $25 PFIC ordinary loss

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