SunCo, a U

question 87

Multiple Choice

SunCo, a U.S. corporation, owns a number of patents related to designing sunglasses. SunCo licenses these patents to unrelated parties. SpainCo, a Spanish corporation, paid SunCo $78,000 in royalties related to these licenses. SpainCo uses the patent information in its manufacturing process in its Texas plant. WiscCo, a domestic corporation, paid SunCo $32,000 in royalties related to the licenses. WiscCo uses the patent information in its manufacturing process in its Germany manufacturing plant. How much U.S.-source royalty income did SunCo earn from these licenses?

• A) $0
• B) $32,000
• C) $78,000
• D) $110,000

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Definitions:

Elder-Care

Services and support provided to the elderly population to meet their medical, social, and personal needs, often including healthcare, housing, and daily life assistance.

Pay Compression

Occurs when individuals with substantially different levels of experience, performance abilities, or both are paid wages or salaries that are relatively equal.

Market Rate

The prevailing price range for goods or services in a specific market at a given time.

Affordable Care Act

A comprehensive health care reform law enacted in March 2010 (also known as Obamacare), aimed at expanding health insurance coverage for the uninsured and improving healthcare delivery.