McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 66

Camille, a citizen and resident of Country A, received a $1,000 dividend from a corporation organized in Country B. Which statement best describes the taxation of this income under the two different approaches to taxing foreign income
a. Country B will not tax this income under a residence-based jurisdiction approach but will tax this income under a source-based jurisdiction approach.
b. Country B will tax this income under a residence-based jurisdiction approach but will not tax this income under a source-based jurisdiction approach.
c. Country B will tax this income under both a residence-based jurisdiction approach and a source-based jurisdiction approach.
d. Country B will not tax this income under either a residence-based jurisdiction approach or a source-based jurisdiction approach.