WorldCo, a Foreign Corporation Not Engaged in a U

question 111

Multiple Choice

WorldCo, a foreign corporation not engaged in a U.S. trade or business, receives $50,000 in interest income from deposits with the foreign branch of a U.S. bank. The U.S. bank earns 78% of its income from foreign sources. How much of WorldCo's interest income is U.S. source?

• A) $0
• B) $11,000
• C) $39,000
• D) $50,000

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Definitions:

Fechner's Law

A principle describing the logarithmic relationship between stimulus magnitude and the resultant sensory experience's intensity.

Specificity Theory

The proposal that different sensory qualities are signaled by different quality-specific neurons. This theory is correct in only a few cases (e.g., pain).

Sensation

The process by which sensory receptors and the nervous system receive and represent stimulus energies from the environment.

Neurons

The basic working units of the brain, specialized cells designed to transmit information to other nerve cells, muscle, or gland cells.