ForCo, a Non-U

question 59

True/False

ForCo, a non-U.S. corporation based in Aldonza, purchases widgets from USCo, Inc., its U.S. parent corporation.
The widgets are sold by ForCo to an unrelated foreign corporation in Aldonza. The income from sale of the widgets by ForCo is Subpart F foreign base company sales income.

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Definitions:

Liability

Financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of economic benefits including money, goods, or services.

Course Of Business

The usual activities and practices of a company or individual in their day-to-day operations.

Liabilities

Financial obligations or debts a company owes to others, payable in money, goods, or services.

Owner's Equity

The residual interest in the assets of an enterprise after deducting its liabilities.