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:

Concepts

Mental representations of categories of objects, events, or ideas based on shared properties.

Categorization

The process of recognizing, differentiating, and understanding objects, concepts, or experiences by grouping them into categories based on shared characteristics.

Superordinate

A term used to describe a higher level or more general category under which lower level categories or entities are grouped.

Subordinate

A person or thing that is of lesser importance, rank, or order.