A Controlled Foreign Corporation (CFC)is Incorporated in Country B,and Is

Multiple Choice

A controlled foreign corporation (CFC) is incorporated in Country B,and is 100% owned by American Manufacturing Corporation.It purchases raw materials from its U.S.parent corporation,manufactures widgets,and sells 70% of the widgets to unrelated purchasers in Country A and 30% to unrelated purchasers in Country B.All widgets will be used in the countries in which they are purchased.The sales produce $100,000 of taxable income.The foreign-base company sales income reportable by American Manufacturing Corporation under the Subpart F rules is

A) $0.
B) $30,000.
C) $70,000.
D) $100,000.