In Allocating Interest Expense Between U

question 28

True/False

In allocating interest expense between U.S.and foreign sources, a taxpayer must use the tax basis of the income-producing assets.

---

Definitions:

Water Table

The upper surface of the zone of saturation in the ground where soil or rocks are permanently saturated with water.

Topography

The arrangement of natural and artificial physical features of an area, including its relief, and the position of these features.

Groundwater Flow

The movement of groundwater through the Earth's subsurface, driven primarily by gravity and pressure differentials.

Vertical Exaggeration

The method of representing the topographical relief on maps and diagrams by increasing the elevation scale relative to the horizontal scale.