Cordeio, Inc. is a controlled foreign corporation (CFC) for theentire tax year. Yancy Company, a U.S. corporation, owns 70% ofCordeio's one class of stock for the entire year. Subpart F incomeis $470,000, and no distributions have been made during the year.Both entities use the calendar tax year.
Assume a 365-day year and not a leap year. Round anydivision to six decimal places and use in subsequent computations.Round your final answers to the nearest dollar.
a. What amount does Yancy include in grossincome as a constructive dividend for the tax year?
$
b. Assume that Cordeio is a CFC until March 1of the calendar tax year. What amount does Yancy include in grossincome as a constructive dividend for the tax year?
$
