Deductible Interest Expense Incurred by a U

question 87

True/False

Deductible interest expense incurred by a U.S. corporation will always be treated as a U.S. source deduction.
Interest expense is sourced based on the type of income generated by the corporation's assets, which could be U.S. or foreign.

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Definitions:

Cylindrical

Relating to the surface or shape of a cylinder, which is a solid geometric figure with straight parallel sides and a circular or oval cross section.

Spherical

Having the shape of a sphere; relating to or resembling a ball or globe.

Antifriction Bearings

Bearings designed to reduce friction between moving parts while supporting radial and axial loads, often using balls or rollers.

Bearing

A machine element that constrains relative motion to only the desired motion, reducing friction between moving parts.