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:

Sclera

The white, outer layer of the eyeball, providing protection and maintaining the eye's shape.

Retina

Nervous tunic of the eyeball.

Lacrimal Gland

Tear gland located in the superolateral corner of the orbit.

Mitral Cells

Neurons in the olfactory bulb that receive signals from the sensory neurons and transmit them to other parts of the brain for odor processing.