Which of the Following Statements Best Describes How the Deemed

Multiple Choice

Which of the following statements best describes how the deemed paid credit is computed by a U.S. corporation?

A) The foreign subsidiary's post-1986 earnings and profits and post-1986 foreign taxes are kept in functional currency.
B) The foreign subsidiary's post-1986 earnings and profits are kept in functional currency and the post-1986 foreign taxes are kept in U.S. dollars.
C) The foreign subsidiary's post-1986 earnings and profits are kept in U.S. dollars and the post-1986 foreign taxes are kept in functional currency.
D) The foreign subsidiary's post-1986 earnings and profits and post-1986 foreign taxes are kept in U.S. dollars.