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Xenia, Inc

Question 44

Multiple Choice

Xenia, Inc., a U.S.shareholder, owns 100% of Fredonia, a CFC.Xenia receives a $3 million cash distribution from Fredonia.Fredonia's E & P is composed of the following amounts. Xenia, Inc., a U.S.shareholder, owns 100% of Fredonia, a CFC.Xenia receives a $3 million cash distribution from Fredonia.Fredonia's E & P is composed of the following amounts. Xenia recognizes a taxable dividend of: A) $3 million. B) $2.5 million. C) $1.5 million. D) $1 million. E) $0. Xenia recognizes a taxable dividend of:


A) $3 million.
B) $2.5 million.
C) $1.5 million.
D) $1 million.
E) $0.

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