USCo, a US

question 30

Multiple Choice

USCo, a U.S. corporation, purchases inventory from distributors within the United States and resells this inventory to customers outside the United States, with title passing outside the United States. Profit on the sale is $10,000. What is the sourcing of the USCo's inventory sales income?

• A) $5,000 U.S. source and $5,000 foreign source.
• B) $5,000 U.S. source and $5,000 sourced based on location of the pertinent manufacturing assets.
• C) $10,000 U.S. source.
• D) $10,000 foreign source.

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Definitions:

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