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

Exercise 42

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.