USCo,a USCorporation,purchases Inventory from Distributors Within the U

question 157

Multiple Choice

USCo,a U.S.corporation,purchases inventory from distributors within the U.S.and resells this inventory to customers outside the U.S.,with title passing outside the U.S.Profit on the sale is $10,000.What is the source of the USCo's inventory sales income?

• A)$5,000 U.S. source and $5,000 foreign source.
• B)$5,000 U.S. source and $5,000 sourced based on location of the pertinent manufacturing assets.
• C)$10,000 U.S. source.
• D)$10,000 foreign source.

---

Definitions:

Discretionary Policies

Economic policies based on judgment and choices by policymakers rather than set rules, often involving government spending and taxation decisions.

Policy Rules

Prescriptive guidelines or principles designed to guide decisions and achieve rational outcomes within an organization or government.

Monetarists

Economists who argue that the money supply's variations play a crucial role in influencing the national output in the short term and determining the price level over the long term.

Money Supply

The whole sum of money available in an economy, including cash, coins, and the balances in checking and savings accounts, at a specific period.