Wood, a U.S. corporation, owns Holz, a German corporation. Wood receives a dividend (non-Subpart F income) from Holz of 75,000€. The average exchange rate for the year is SIUS: 0.6€, and the exchange rate on the date of the dividend distribution is SIUS: 0.9€. Wood's exchange gain or loss is: A.$15,000 loss B.$15,000 gain C.$75,000 gain D. $0. There is no exchange gain or loss on a dividend distribution

Wood, a U.S. corporation, owns Holz, a German corporation. Wood receives a dividend (non-Subpart F income) from Holz of 75,000€. The average exchange rate for the year is SIUS: 0.6€, and the exchange rate on the date of the dividend distribution is SIUS: 0.9€. Wood's exchange gain or loss is: A.$15,000 loss B.$15,000 gain C.$75,000 gain D. $0. There is no exchange gain or loss on a dividend distribution

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 28P

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Question

A.$15,000 loss

B.$15,000 gain

C.$75,000 gain

D. $0. There is no exchange gain or loss on a dividend distribution

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