The foreign tax credit regime is the primary mechanism used by the U.S. government to mitigate or eliminate the potential double taxation of income earned by U.S. individuals outside the United States.

A true

B false

Which of the following transactions engaged in by a Swiss controlled foreign corporation creates foreign base company sales income?

A Purchase of inventory from an unrelated person in Germany and sale to a related person in Poland.

B Purchase of inventory from a related person in Germany and sale to an unrelated person in Switzerland.

C Purchase of inventory from a related person in Germany and sale to a related person in Poland.

D Purchase of inventory from an unrelated person in Germany and sale to an unrelated person in Poland.