ForCo,a Controlled Foreign Corporation,earns $500,000 in Net Interest and Dividend

Multiple Choice

ForCo,a controlled foreign corporation,earns $500,000 in net interest and dividend income from investments in the bonds and stock of unrelated companies.All of the unrelated companies are located in ForCo's country of incorporation.ForCo's Subpart F income for the year is:

A) $0.
B) $500,000.
C) $500,000 only if ForCo is engaged in a trade or business in its home country.
D) $500,000 only if ForCo is not engaged in a trade or business in its home country.