ForCo, a Foreign Corporation, Receives Interest Income of $50,000 from USCo

question 21

Multiple Choice

ForCo, a foreign corporation, receives interest income of $50,000 from USCo, an unrelated domestic corporation. USCo historically has earned 79% of its gross income from active foreign-source business income. What amount of
ForCo's interest income is U.S.-source?

• A) $0
• B) $10,500
• C) $39,500
• D) $50,000

---

Definitions:

Conscious Marketers

Marketers who are mindful of the ethical and social impacts of their marketing strategies and strive to create positive change through their practices.

Controversial Industries

Sectors of industry that provoke public debate and disagreement, often due to ethical, environmental, or health concerns.

Polluting Industries

Industries that significantly contribute to contamination of the environment through the release of harmful substances or waste into the air, water, or soil.

Triple Bottom Line

An accounting framework that considers social, environmental, and financial impacts of decisions, aiming for a balance between profit, people, and the planet.