Overseas Business Activities Conducted by U

Multiple Choice

Overseas business activities conducted by U.S. corporations receive which one of the following favorable tax breaks?

A) Foreign subsidiaries of U.S. corporations are exempt from the U.S. corporate income tax unless they earn U.S.- source investment or trade or business income.
B) Domestic corporations conducting business in a foreign country through a branch office or facility can exempt non- U.S. income from the U.S. corporate income tax.
C) Foreign subsidiaries of U.S. corporations are always exempt from the U.S. corporate income tax even if they earn U.S.- source investment or trade or business income.
D) All of the above are correct.