Austin Corporation,a U

question 81

Multiple Choice

Austin Corporation,a U.S.corporation,received the following investment income during 2017: $50,000 of dividend income from ownership of stock in a French corporation,$20,000 interest on a loan to its Dutch subsidiary,$40,000 royalty from its 50-percent owned Irish venture,and $30,000 capital gain from sale of its stock in a Brazilian corporation.How much foreign source income does Austin have in 2017?

• A) $140,000.
• B) $110,000.
• C) $70,000.
• D) $60,000.

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Definitions:

Multiplicative Inverse

The number that, when multiplied by a given number, results in a product of one. It is also known as the reciprocal.

Complex Number

A value represented as a + bi, where a and b are real numbers, and i is the unit of imaginary numbers.

Complex Conjugate

The complex conjugate of a complex number is the number with an equal real part and an imaginary part equal in magnitude but opposite in sign.

Simplify

The process of altering an expression to make it easier to understand or work with, often by reducing its complexity.