Reference no: EM132674736

Problem 1: Which of the following incomes earned by a controlled foreign corporation incorporated in Spain is not foreign personal holding company income?

Question options:

Option 1: Interest income received from a loan to an unrelated party.

Option 2: Dividend income from a 5 percent investment in an unrelated corporation.

Option 3: Rent received from a passive investment in an apartment complex.

Option 4: Gross profit from the manufacture and sale of inventory to an unrelated party.

Problem 2: The estate and gift taxes share several common features. Which of the following characteristics is common to both the estate and gift taxes?

Question options:

Option 1: A marital deduction and a deduction for casualty losses.

Option 2: A marital deduction for transfers of all terminable interests.

Option 3: The tax rate schedule for calculating gross transfer taxes.

Option 4: A charitable deduction and an annual exclusion.

Option 5: None of these choices list characteristics common to both the gift and the estate tax.