GlobalCo, a Foreign Corporation Not Engaged in a U

question 26

Multiple Choice

GlobalCo, a foreign corporation not engaged in a U.S. trade or business, receives $80,000 in interest income from deposits with the foreign branch of a U.S. bank. The U.S. bank earns 24% of its income from foreign sources. How much of GlobalCo's interest income is U.S. source?

• A) $0
• B) $19,200
• C) $60,800
• D) $80,000

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Definitions:

Mathematical Interpretation

The process of understanding and applying mathematical concepts and symbols to solve problems or represent real-world scenarios.

Digested Food

Nutrients that have been broken down by enzymatic action into forms that can be absorbed by the body.

Stomach Absorbs

The process by which the stomach's lining absorbs specific substances such as alcohol and some drugs, though most nutrient absorption occurs in the intestines.

Alimentary Canal

The entire digestive tract from the mouth to the anus, through which food is ingested, broken down, and absorbed.