Which of the following incomes earned by a controlled foreign corporation incorporated in Spain is not foreign personal holding company income?
A)Interest income received from a loan to an unrelated party.
B)Dividend income from a 5 percent investment in an unrelated corporation.
C)Rent received from a passive investment in an apartment complex.
D)Gross profit from the manufacture and sale of inventory to an unrelated party.

Question

Quizplus · Accepted Answer

Gross profit from the manufacture and sale of inventory to an unrelated party is considered active income and not foreign personal holding company income. Interest income, dividend income, and rent received from passive investments are all considered foreign personal holding company income.

Which of the Following Incomes Earned by a Controlled Foreign