During the Current Year,USACo (A Domestic Corporation) Sold Equipment to FrenchCo,a

question 20

Multiple Choice

During the current year,USACo (a domestic corporation) sold equipment to FrenchCo,a foreign corporation,for $350,000,with title passing to the buyer in France.USACo purchased the equipment several years ago for $100,000 and took $80,000 of depreciation deductions on the equipment,all of which were allocated to U.S.-source income.USACo's adjusted basis in the equipment is $20,000 on the date of sale.What is the source of the $330,000 gain on the sale of this equipment?

• A)$330,000 foreign source.
• B)$330,000 U.S. source.
• C)$250,000 foreign source and $80,000 U.S. source.
• D)$250,000 U.S. source and $80,000 foreign source.