Vintner,SA French

question 8

Short Answer

Vintner,S.A.,a French corporation,received the following sources of income during 2017:
$20,000 interest income from a loan to its 100 percent owned U.S.subsidiary.
$30,000 dividend income from its 100 percent owned Canadian subsidiary.
$100,000 royalty income from its Irish subsidiary for use of a trademark within the United States.
$100,000 rent income from its Mexican subsidiary for use of a warehouse located in Arizona.
$50,000 capital gain from sale of stock in its 40 percent owned German joint venture.Title passed in the United States.
What amount of U.S.source income does Vintner have in 2017?

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made, prepared during the accounting cycle to ensure debits equal credits.

Financial Statement Column(s)

Refers to the categorized sections within financial statements that display associated financial data, such as assets, liabilities, revenues, and expenses.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.

Adjusted Trial Balance

An Adjusted Trial Balance is a listing of all company accounts that will appear in the financial statements after year-end adjustments are made.