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Which of the Following Statements About the Deemed Paid Foreign

Question 91

Multiple Choice

Which of the following statements about the deemed paid foreign tax credit is false?

A) If a U.S.corporation owns 10% or more of the voting stock of a foreign corporation,the U.S.corporation is entitled to a deemed paid foreign tax credit.
B) When claiming a deemed paid foreign tax credit,a U.S.corporation reports dividend income equal to the dividend received grossed up by the foreign tax paid with respect to the dividend.
C) A deemed paid foreign tax credit is allowed for foreign taxes paid by a domestic subsidiary of a U.S.multinational corporation.
D) A deemed paid foreign tax credit is subject to the foreign tax credit limitation.

Correct Answer: