Which of the following is true concerning taxable earnings of foreign corporations according to the U.S. IRS?
A) The temporal method must be used to translate financial statements into dollars.
B) Active income of a CFC is not recognized until distributed as a dividend.
C) Passive income does not need to be recognized.
D) Passive income of a CFC is taxed after being translated into dollars at the average exchange rate.
Correct Answer:
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