_____ Under the various provisions of the Internal Revenue Code that pertain to subsidiaries, double corporate taxation effectively occurs for earnings of
A) 100%-owned domestic subsidiaries.
B) 100%-owned foreign subsidiaries.
C) 100%-owned domestic and 100%-owned foreign subsidiaries.

Question

Quizplus · Accepted Answer

Double corporate taxation occurs for earnings of 100%-owned foreign subsidiaries because the earnings are taxed in the foreign country and then again when repatriated to the parent company in the U.S.

_____ Under the Various Provisions of the Internal Revenue Code