Which of the Following Is a Principle Used in Applying

question 80

Multiple Choice

Which of the following is a principle used in applying the income-sourcing rules under U.S. tax law?

• A) The rules should be acceptable to both countries.
• B) The rules should favor the U.S. Treasury.
• C) The rules should favor the treasury of the non-U.S. country.
• D) The rules should apply to income items only; deductions need not be sourced in this way.

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Definitions:

Validity

The extent to which a test or instrument measures what it claims to measure.

Core Concepts

Fundamental ideas or principles that are the building blocks in any field of study or knowledge.

Accumulated Knowledge

The body of information and understanding one has gained over time through experiences, education, and observations.

95th Percentile

A statistical value that represents a value below which 95% of the observations in a group fall.