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Circle the correct answer for each of the following questions:
1. A DISC purchased export property and leased
the property to an unrelated third party (overseas). The
transaction produced qualified gross receipts.
T F
2. The intercompany price in the above transaction must be
determined pursuant to Section 482.
T F
3. A DISC purchased export property from an unrelated company
and sold the property to another unrelated company in a transaction
producing qualified export receipts. The DISC may use the 50:50
pricing rule for the earlier transaction providing a profit resulted.
T F
4. Export property was sold to a purchaser in the Panama Canal
Zone. The transaction produces qualified export receipts.
T F
5. The intercompany price in the above transaction must be
determined pursuant to Section 482.
T F
6. Where X and Yare affiliates of a DISC, X manufactures a
component and sells it to Y, Y includes the component in a finished
product and sells it to the DISC, X's profit can be based on either
the 4% or 50:50 computation.
T F
7. A DISC's profit on related and subsidiary services performed
by its parent can be based on the 4~o or 50:50 computation.
T F
8. Where a DISC buys export property from a related party and
sells the export property to a related property in a trans11ctLon
giving rise to qualified export receipts, the profit realized
by the DISC in the latter transaction can be safely computed under
the 4% rule (subject to the no-loss restrictions).
T F
9. In the above fact pattern, the earlier transaction is ineligible
for the 50:50 pricing rule.
T F
10. Sale of EXIM paper by a DISC's parent to the DISC is eligible
for the 50:50 pricing rule.
T F
