USCo,a USCorporation,purchases Inventory from Distributors Within the U

question 157

Multiple Choice

USCo,a U.S.corporation,purchases inventory from distributors within the U.S.and resells this inventory to customers outside the U.S.,with title passing outside the U.S.Profit on the sale is $10,000.What is the source of the USCo's inventory sales income?

• A)$5,000 U.S. source and $5,000 foreign source.
• B)$5,000 U.S. source and $5,000 sourced based on location of the pertinent manufacturing assets.
• C)$10,000 U.S. source.
• D)$10,000 foreign source.

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Definitions:

Discount Rate

The rate at which the central bank lends money to commercial banks and other financial institutions through its discount window.

Fiscal Expenditure

Government spending, including spending on goods and services, welfare, and public works, financed through taxation or borrowing.

Taxes

Taxes are compulsory financial charges or levies imposed by a government on individuals or entities to finance government spending and various public expenditures.

Aggregate Demand-Aggregate Supply Model

A macroeconomic model that explains price level and output through the relationship between aggregate demand and aggregate supply.