Goolsbee, Inc Goolsbee Incurs Interest Expense of $200,000

question 96

Essay

Goolsbee, Inc., a U.S. corporation, generates U.S.-source and foreign-source gross income. Goolsbee's assets tax basis) are as follows.
$$\begin{array} { l r } \text { Generating U.S.-source income } & \$ 15,000,000 \\\text { Generating foreign-source income } & \underline { 25,000,000 } \\\text { Total } & \$ 40,000,000 \\\hline\end{array}$$
Goolsbee incurs interest expense of $200,000. Apportion interest expense to foreign-source income.

---

Definitions:

Right Angle

An angle of 90 degrees.

Opposite Side

In geometry, the opposite side refers to the side facing or diametrically across from a specified point or another side within a geometric figure.

Right Triangle

A triangle with one angle measuring exactly 90 degrees, essential in understanding the geometrical and trigonometrical principles.

Adjacent Angle

Adjacent angles are two angles that have a common vertex and a common side but do not overlap, often found in geometric shapes and figures.