KeenCo, a domestic corporation, is the sole shareholder of LovettCo, a controlled foreign corporation.LovettCo has $250,000 in E & P attributable to income not previously taxed to KeenCo. LovettCo also holds $200,000 E & P attributable to income taxed to the U.S.shareholder as Subpart F income.LovettCo makes a $150,000 dividend distribution to KeenCo.Ignoring any deemed paid credit implications, what is the U.S.gross income to KeenCo resulting from this dividend?

Question

Quizplus · Accepted Answer

The Answer of KeenCo, a domestic corporation, is the sole shareholder of LovettCo, a controlled foreign corporation.LovettCo has $250,000 in E & P attributable to income not previously taxed to KeenCo. LovettCo also holds $200,000 E & P attributable to income taxed to the U.S.shareholder as Subpart F income.LovettCo makes a $150,000 dividend distribution to KeenCo.Ignoring any deemed paid credit implications, what is the U.S.gross income to KeenCo resulting from this dividend?

KeenCo, a Domestic Corporation, Is the Sole Shareholder of LovettCo