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:

Normal Business Activities

The everyday tasks and operations conducted by a company to generate profits and maintain viability, such as sales, production, and administration.

Statement Of Financial Position

Another term for the balance sheet, showing a company's assets, liabilities, and shareholders' equity at a specific point in time.

Order Of Decreasing Liquidity

A ranking of assets on a balance sheet based on their ease of conversion to cash without loss of value.