OutCo, a controlled foreign corporation in Meena (located outside the United States), earns $600,000 in net interest and dividend income from investments in the bonds and stock of unrelated companies. All of the dividend payors are located in Meena. OutCo's Subpart F income for the year is:

Question

Quizplus · Accepted Answer

Subpart F income includes passive income such as dividends and interest, so the full $600,000 would be considered Subpart F income regardless of whether OutCo is engaged in a trade or business in Meena.

OutCo, a Controlled Foreign Corporation in Meena (Located Outside the United