Question 1 of 33 2 Points Pis a domestic corporation. P owns 50% of F1, F1 owns 50% of F2, and F2 owns 50% of F3. Prior to 2018, which corporations could P claim a deemed paid foreign tax credit, assuming the foreign corporation's earnings were distributed up to P. OA. None OB. Only F1 C. F1 and F2 OD. F1, F2 and F3 Reset Selection Question 3 of 33 2 Points Harry is a citizen and resident of Saudi Arabia. During the current year, Harry never visits the United States, nor does he hold a green card. However, he realized a gain on the sale of Extel Corporation stock, a corporation organized in the United States. The United States does NOT have an income tax treaty with Saudi Arabia. What is the Source of Income and how does the U.S. tax the income? A. US Sourced and NOT taxed B. US Sourced and taxed at graduated tax rates C. US Sourced and taxed at withholding tax rates D. Foreign Sourced and NOT taxed E. Foreign Sourced and taxed at graduated tax rates F. Foreign Sourced and taxed at withholding tax rates Reset Selection Question 6 of 33 2 Points PSHIP, a domestic partnership, operates a branch in Canada. The Canadian branch earns $100,000 of income during the year and pays $26,000 in Canadian income taxes. The Canadian income taxes of $26,000 are eligible to be taken as a foreign tax credit by: A. PSHIP. OB. Partners of PSHIP. C. Both PSHIP and PSHIP's partners. D. Neither PSHIP nor its partners. Reset Selection Question 11 of 33 2 Points PiperCo, a domestic corporation, expands its operations to foreign country F. During the current taxable year, PiperCo's country F operations have a net profit of $100,000. PiperCo retains the earnings in foreign country F. For the current taxable year, PiperCo will report net profit from its foreign operations of: A. $100,000 if the foreign operations are conducted as a branch or $0 if the foreign operations are conducted as a subsidiary. B. $0 if the foreign operations are conducted as a branch or $100,000 if the operations are conducted as a subsidiary. OC. $0, regardless of whether the foreign operations are conducted as a subsidiary or a branch. D. $100,000, regardless of whether the foreign operations are conducted as a subsidiary or a branch. Reset Selection Question 12 of 33 2 Points Pis a domestic corporation. P owns 100% of F1, F1 owns 100% of F2, and F2 owns 9% of F3. Prior to 2018, which corporations could P claim a deemed paid foreign tax credit, assuming the foreign corporation's earnings were distributed up to P. A. None B. Only F1 C. F1 and F2 D. F1, F2 and F3 Reset Selection Question 1 of 33 2 Points Pis a domestic corporation. P owns 50% of F1, F1 owns 50% of F2, and F2 owns 50% of F3. Prior to 2018, which corporations could P claim a deemed paid foreign tax credit, assuming the foreign corporation's earnings were distributed up to P. OA. None OB. Only F1 C. F1 and F2 OD. F1, F2 and F3 Reset Selection Question 3 of 33 2 Points Harry is a citizen and resident of Saudi Arabia. During the current year, Harry never visits the United States, nor does he hold a green card. However, he realized a gain on the sale of Extel Corporation stock, a corporation organized in the United States. The United States does NOT have an income tax treaty with Saudi Arabia. What is the Source of Income and how does the U.S. tax the income? A. US Sourced and NOT taxed B. US Sourced and taxed at graduated tax rates C. US Sourced and taxed at withholding tax rates D. Foreign Sourced and NOT taxed E. Foreign Sourced and taxed at graduated tax rates F. Foreign Sourced and taxed at withholding tax rates Reset Selection Question 6 of 33 2 Points PSHIP, a domestic partnership, operates a branch in Canada. The Canadian branch earns $100,000 of income during the year and pays $26,000 in Canadian income taxes. The Canadian income taxes of $26,000 are eligible to be taken as a foreign tax credit by: A. PSHIP. OB. Partners of PSHIP. C. Both PSHIP and PSHIP's partners. D. Neither PSHIP nor its partners. Reset Selection Question 11 of 33 2 Points PiperCo, a domestic corporation, expands its operations to foreign country F. During the current taxable year, PiperCo's country F operations have a net profit of $100,000. PiperCo retains the earnings in foreign country F. For the current taxable year, PiperCo will report net profit from its foreign operations of: A. $100,000 if the foreign operations are conducted as a branch or $0 if the foreign operations are conducted as a subsidiary. B. $0 if the foreign operations are conducted as a branch or $100,000 if the operations are conducted as a subsidiary. OC. $0, regardless of whether the foreign operations are conducted as a subsidiary or a branch. D. $100,000, regardless of whether the foreign operations are conducted as a subsidiary or a branch. Reset Selection Question 12 of 33 2 Points Pis a domestic corporation. P owns 100% of F1, F1 owns 100% of F2, and F2 owns 9% of F3. Prior to 2018, which corporations could P claim a deemed paid foreign tax credit, assuming the foreign corporation's earnings were distributed up to P. A. None B. Only F1 C. F1 and F2 D. F1, F2 and F3 Reset Selection
