WorldCo, a Foreign Corporation Not Engaged in a U

question 111

Multiple Choice

WorldCo, a foreign corporation not engaged in a U.S. trade or business, receives $50,000 in interest income from deposits with the foreign branch of a U.S. bank. The U.S. bank earns 78% of its income from foreign sources. How much of WorldCo's interest income is U.S. source?

• A) $0
• B) $11,000
• C) $39,000
• D) $50,000

---

Definitions:

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a given price.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at different prices.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.

Surplus

An excess of production or supply over demand, often leading to a decrease in prices.