Portsmouth Corporation, a British corporation, is a wholly owned subsidiary of Salem Corporation, a U.S. corporation. During the year, Portsmouth reported the following income:
$250,000 interest income received from a loan to an unrelated French corporation.
$100,000 dividend income received from a less than 1 percent owned unrelated Dutch corporation.
$150,000 rent income from an unrelated British corporation on property Portsmouth actively manages.
$500,000 gross profit from the sale of inventory manufactured by Portsmouth in Great Britain and sold to a 100 percent owned subsidiary in Germany.
What amount of subpart F income does Portsmouth recognize in the current year?

Question

Quizplus · Accepted Answer

The Answer of Portsmouth Corporation, a British corporation, is a wholly owned subsidiary of Salem Corporation, a U.S. corporation. During the year, Portsmouth reported the following income:
$250,000 interest income received from a loan to an unrelated French corporation.
$100,000 dividend income received from a less than 1 percent owned unrelated Dutch corporation.
$150,000 rent income from an unrelated British corporation on property Portsmouth actively manages.
$500,000 gross profit from the sale of inventory manufactured by Portsmouth in Great Britain and sold to a 100 percent owned subsidiary in Germany.
What amount of subpart F income does Portsmouth recognize in the current year?

Portsmouth Corporation, a British Corporation, Is a Wholly Owned Subsidiary