Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Lincoln Corporation, a U.S. corporation, owns 50% of the stock of a controlled foreign corporation (CFC). At the beginning of the year, Lincoln's basis in its CFC stock was $100,000. The CFC's current-year income was $1 million, $600,000 of which was subpart F income. The CFC has no global intangible low-taxed income, paid no foreign income tax and distributed no dividends. How much current taxable income must Lincoln report as a result of its ownership of the CFC

Sagot :

abiolataiwo2015

Answer:

$300,000

Explanation:

Calculation to determine How much current taxable income must Lincoln report as a result of its ownership of the CFC

Using this formula

Taxable income=Subpart F income * Ownership percentage

Let plug in the formula

Taxable income=$600,000*50%

Taxable income=$300,000

Therefore The amount of current taxable income that Lincoln must report as a result of its ownership of the CFC is $300,000

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.