USCo,a USCorporation,purchases Inventory from Distributors Within the U

question 157

Multiple Choice

USCo,a U.S.corporation,purchases inventory from distributors within the U.S.and resells this inventory to customers outside the U.S.,with title passing outside the U.S.Profit on the sale is $10,000.What is the source of the USCo's inventory sales income?

• A)$5,000 U.S. source and $5,000 foreign source.
• B)$5,000 U.S. source and $5,000 sourced based on location of the pertinent manufacturing assets.
• C)$10,000 U.S. source.
• D)$10,000 foreign source.

Be aware of the historical context and problems that led to the drafting of the U.S. Constitution, including national defense, foreign affairs, and governance under the Articles of Confederation.

Understand the relationship between state and local governments, including the creation and dissolution of local governments.

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