GlobalCo, a Foreign Corporation Not Engaged in a U

question 26

Multiple Choice

GlobalCo, a foreign corporation not engaged in a U.S. trade or business, receives $80,000 in interest income from deposits with the foreign branch of a U.S. bank. The U.S. bank earns 24% of its income from foreign sources. How much of GlobalCo's interest income is U.S. source?

• A) $0
• B) $19,200
• C) $60,800
• D) $80,000

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Definitions:

Foreign Affairs

The management of relationships and dealings between countries.

Policy Adviser

An expert that provides recommendations and strategic advice on specific policy issues to politicians, government departments, or other organizations.

Vice President

The second-highest executive officer in a government's executive branch, typically serving under the President and possibly taking over the presidency in case of vacancy.