SunCo, a U

question 87

Multiple Choice

SunCo, a U.S. corporation, owns a number of patents related to designing sunglasses. SunCo licenses these patents to unrelated parties. SpainCo, a Spanish corporation, paid SunCo $78,000 in royalties related to these licenses. SpainCo uses the patent information in its manufacturing process in its Texas plant. WiscCo, a domestic corporation, paid SunCo $32,000 in royalties related to the licenses. WiscCo uses the patent information in its manufacturing process in its Germany manufacturing plant. How much U.S.-source royalty income did SunCo earn from these licenses?

• A) $0
• B) $32,000
• C) $78,000
• D) $110,000

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Definitions:

Sympathetic Nervous System

The division of the autonomic nervous system that arouses the body, mobilizing its energy in stressful situations.

Parasympathetic Nervous System

The division of the autonomic nervous system that calms the body, conserving its energy.

Somatic Nervous System

The division of the peripheral nervous system that controls the body’s skeletal muscles. Also called the skeletal nervous system.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out neural signals.