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A Deemed Paid Credit Is Available on Which of the Following

Question 50

Multiple Choice

A deemed paid credit is available on which of the following dividends received by a U.S. corporation?

A) Dividend received from a 5 percent owned foreign corporation, all of the income of which is derived from an active business.
B) Dividend received from a 20 percent owned foreign corporation, all of the income of which is derived from an active business.
C) Dividend received from a 100 percent owned foreign corporation, all of the income of which is derived from an active business.
D) Both dividend received from a 20 percent owned foreign corporation, all of the income of which is derived from an active business and dividend received from a 100 percent owned foreign corporation, all of the income of which is derived from an active business are correct answers.

Correct Answer: