A U.S.corporation owns a German corporation.The U.S.corporation receives a dividend (non-Subpart F income) of 75,000 euro.The average exchange rate for the year is $1US: 0.6 euro,and the exchange rate on the date of the dividend distribution is $1US: 0.80 euro.The U.S.corporation's exchange gain or loss is:
A) $15,000 gain.
B) $15,000 loss.
C) $75,000 gain.
D) There is no exchange gain or loss on an actual dividend distribution.
E) None of the above.
Correct Answer:
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