OutCo, a Controlled Foreign Corporation in Meena (Located Outside the U.S.)

Multiple Choice

OutCo, a controlled foreign corporation in Meena (located outside the U.S.) , earns $600,000 in net interest and dividend income from investments in the bonds and stock of unrelated companies. All of the dividend payors are located in Meena. OutCo's Subpart F income for the year is:

A) $0.
B) $0 only if OutCo is engaged in a trade or business in Meena.
C) $600,000.
D) $600,000 only if OutCo is engaged in a trade or business in Meena.