Which of the Following Statements Regarding the Sourcing of Gross

question 46

Multiple Choice

Which of the following statements regarding the sourcing of gross income is true?

• A) Non-U.S. persons not engaged in a U.S. trade or business are indifferent as to whether any of their income is U.S. source.
• B) All income earned by non-U.S. persons not engaged in a U.S. trade or business is treated as foreign source.
• C) U.S.-source income is not subject to withholding so long as such income is not treated as effectively connected with a U.S. trade or business.
• D) Certain U.S.-source investment income earned by non-U.S. persons not engaged in a U.S. trade or business may be subject to a U.S. withholding tax.

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Definitions:

Wavelength

A measure of the distance between two identical points (such as peaks) in consecutive cycles of a wave.

P Orbital

A type of atomic orbital that has a dumbbell shape and can hold up to two electrons, with orientations along the x, y, and z axes.

Electrons

Subatomic particles with a negative electric charge, orbiting the nucleus of an atom, involved in chemical bonds and electricity.

Orbital

A region around an atomic nucleus where an electron is likely to be found with a high probability.