A U.S.corporation owns a German corporation.The U.S.corporation receives a dividend (non-Subpart F income)of 75,000€.The average exchange rate for the year is $1US: 0.6€,and the exchange rate on the date of the dividend distribution is $1US: 0.80€.The U.S.corporation's exchange gain or loss is:

Question

Quizplus · Accepted Answer

There is no exchange gain or loss on an actual dividend distribution because the dividend is translated at the exchange rate on the date of distribution.

A USCorporation Owns a German Corporation