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(Solution) - Logo Corporation a domestic corporation owns 100 of TAG a for

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Logo Corporation, a domestic corporation, owns 100%of TAG, a foreign corporation. TAG is Logo?s only source of income. During the current year, TAG receives $80,000 of dividends and interest from its foreign investments. TAG pays $6,000 in foreign taxes and does not distribute any income to Logo during the year. Write a memo to Logo discussing the implications of its ownership of TAG.


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This question was answered on: Jul 11, 2017

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