Identify Which of the Following Statements Is True

Multiple Choice

Identify which of the following statements is true.

A) A controlled foreign corporation (CFC) can avoid the constructive dividend distribution resulting from investments in U.S. property if it invests in U.S. government obligations.
B) Distributions made by a controlled foreign corporation (CFC) are deemed to be paid first from tax- deferred earnings.
C) When a controlled foreign corporation (CFC) uses Subpart F income to invest in U.S. property, the investments are characterized as constructive distributions.
D) All of the above are false.