USAco, a domestic corporation, manufactures widgets for sale in the United States. USAco owns 100% of the stock of FORco, a foreign manufacturing and sales subsidiary. In 2017, FORco had $30 million of income from the manufacturing and sale of widgets in Europe and paid $3 million in foreign income taxes. FORco distributed no dividends. In October of the 2017, FORco loaned $10.8 million to USAco. Required:
a. What are the U. S. tax consequences (if any) to USAco?
b. How would you answer to part (a) change if the year is 2020?

Leading guitar string producer wound up inc. has enjoyed a competitive advantage based on its proprietary coating that gives its strings a clearer sound and longer lifespan than uncoated strings. one of wound up's competitors, however, has recently developed a similar coating using less expensive ingredients, which allows it to charge a lower price than wound up for similar-quality strings. wound up's competitive advantage is in danger due to a. a lack of perceived value b. a lack of organization c. direct imitation and substitution d. resource immobility