Rafael Is a Citizen of Spain and a Resident of the United

question 31

Essay

Rafael is a citizen of Spain and a resident of the United States.During 2017,Rafael received the following income:
Compensation of $5 million from competing in tennis matches in the U.S.
Cash dividends of $10,000 from a Spanish corporation that earns 50 percent of its income from sales in the United States.
Interest of $2,000 from a Spanish citizen who is a resident of the U.S.
Rent of $5,000 from U.S.residents who rented his villa in Italy.
Gain of $10,000 on the sale of stock in a German corporation.
Determine the source (U.S.or foreign)of each item of income Rafael received in 2017.

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Definitions:

EBITDA Coverage Ratio

A financial ratio that measures a company's ability to pay off its incurred debt, calculated by dividing EBITDA by total debt service costs.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the degree of leverage and financial risk.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing the profit and the revenue.

P/E Ratio

Price to Earnings (P/E) ratio is a valuation metric that compares the price of a stock to its per-share earnings, indicating how much investors are willing to pay per dollar of earnings.