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Dividends Received from a Domestic Corporation Are Totally Sourced to the U.S

Question 50

Multiple Choice

Dividends received from a domestic corporation are totally sourced to the U.S.:

A) If the corporation earns at least 80% of its gross income over the immediately preceding three tax years from the active conduct of a U.S. trade or business.
B) If the corporation earns at least 25% of its gross income over the immediately preceding three tax years from the active conduct of a U.S. trade or business.
C) Unless the corporation earns at least 80% of its gross income over the immediately preceding three tax years from the active conduct of a foreign trade or business.
D) Unless the corporation earns at least 25% of its gross income over the immediately preceding three tax years from the active conduct of a foreign trade or business.
E) In all of the above cases.

Correct Answer: