Home / Expert Answers / Accounting / question-20foreign-inc-a-foreign-corporation-has-the-following-activity-during-the-prior-3-years-pa476

(Solved): QUESTION 20Foreign Inc., a foreign corporation, has the following activity during the prior 3 years: ...



QUESTION 20

Foreign Inc., a foreign corporation, has the following activity during the prior 3 years:

Year 1 - US trade or business income $5,000, other foreign sources $10,000, total $15,000.

Year 2 - US trade or business income $15,000, other foreign sources $27,000, total $42,000.

Year 3 - US trade or business income $22,000, other foreign sources $19,000, total $41,000.

In Year 4, Foreign pays a $10,000 dividend to its sole shareholder Abigail, a US citizen.

What is the source of the dividend?

a.$10,000 US source
b.$10,000 foreign source
c.$4,286 US source and $5,714 foreign source
d.$7,500 foreign source and $2,500 US source
e.None of the above


We have an Answer from Expert

View Expert Answer

Expert Answer



To determine the source of the dividend paid by Foreign Inc. to its sole shareholder Abigail, we nee...
We have an Answer from Expert

Buy This Answer $5

Place Order

We Provide Services Across The Globe