Obispo,Inc

question 18

Short Answer

Obispo,Inc.,a U.S.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.
$50,000 royalty income from its Irish subsidiary for use of a trademark within the United States.
$40,000 rent income from its Dutch subsidiary for use of a warehouse located in Belgium.
$3,000 capital gain from sale of stock in its 40 percent owned Mexican joint venture.Title passed in the United States.
What amount of foreign source income does Obispo have in 2017?

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Definitions:

Natural Rate

The level of any economic variable that is achieved when the economy is at full employment, often used in the context of the natural rate of unemployment.

Public Policy

The principles, often unwritten, on which social laws are based, determined by governmental entities and officials to address public issues.

Information Technology

The study or use of systems (especially computers and telecommunications) for storing, retrieving, and sending information.

Unemployment Insurance

A government program that provides financial assistance to unemployed workers who have lost their jobs through no fault of their own.