Question
QUESTION 25 Fire Inc., a US corporation, owns 100% of Ice, Inc. a foreign corporation. Fire has owned Ice for the last two years. Fire
QUESTION 25
Fire Inc., a US corporation, owns 100% of Ice, Inc. a foreign corporation. Fire has owned Ice for the last two years. Fire manufactures matches and sells the matches to Ice. Title passes outside of the US.
In 2020, Fire earned $10,000 of net income from sales to Ice. Also in 2020, Ice made a $10,000 cash distribution to Fire that is treated as a dividend.
Based on these facts, what is Fires taxable income for 2020?
| a. | $10,000 | |
| b. | $0 | |
| c. | $15,000 | |
| d. | $20,000 | |
| e. | none of the above |
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Farmers Irs Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304134237, 978-1304134233
