ForCo,a controlled foreign corporation,earns $500,000 in net interest and dividend income from investments in the bonds and stock of unrelated companies.All of the unrelated companies are located in ForCo's country of incorporation.ForCo's Subpart F income for the year is:

Question

Quizplus · Accepted Answer

Subpart F income includes passive income such as interest and dividend income from investments in unrelated companies, regardless of whether or not ForCo is engaged in a trade or business in its home country. Therefore, ForCo's Subpart F income for the year is $500,000.

ForCo,a Controlled Foreign Corporation,earns $500,000 in Net Interest and Dividend