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:

Social Justice

The concept aiming for equal access to wealth, opportunities, and privileges within a society.

Personal Freedoms

The rights and liberties that protect the individual from excessive government control and allow for freedoms of speech, religion, and expression among others.

Local Taxes

Taxes imposed by local government entities, such as municipalities or counties, including property taxes, sales taxes, and income taxes at the local level.

Federal Taxes

Taxes imposed by the federal government on income, corporate profits, and goods and services.