Which of the following income items does not represent Subpart F income if earned by a controlled foreign corporation? Purchase of inventory from the U.S. parent, followed by:

Question

Quizplus · Accepted Answer

When a controlled foreign corporation purchases inventory from its U.S. parent and sells it to anyone inside the CFC country or outside the CFC country, it is not considered Subpart F income. However, if the CFC sells to a related party outside the CFC country or to a non-related party outside the CFC country, it is considered Subpart F income.

Which of the Following Income Items Does Not Represent Subpart