GlobalCo, a Foreign Corporation Not Engaged in a U

question 26

Multiple Choice

GlobalCo, a foreign corporation not engaged in a U.S. trade or business, receives $80,000 in interest income from deposits with the foreign branch of a U.S. bank. The U.S. bank earns 24% of its income from foreign sources. How much of GlobalCo's interest income is U.S. source?

• A) $0
• B) $19,200
• C) $60,800
• D) $80,000

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Definitions:

Ratified

Confirmed or made official an agreement, treaty, or contract by expressing formal approval or consent.

Reverse-Engineers

The process of analyzing a product's system, component, or module to determine how it operates in order to replicate or enhance the object.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract without a legitimate legal excuse.

Legally Binding

Describes agreements or contracts that are enforceable by law, where parties are obligated to fulfill their terms.