AirCo,a domestic corporation,purchases inventory for resale from unrelated distributors within the United States and resells this inventory to customers outside the United States,with title passing outside the United States.What is the source of AirCo's inventory sales income?

Question

Quizplus · Accepted Answer

The source of AirCo's inventory sales income is foreign since the inventory is sold to customers outside the United States and title passes outside the United States. This means that the income is not connected with any U.S. source, and therefore, it is 100% foreign source income.

AirCo,a Domestic Corporation,purchases Inventory for Resale from Unrelated Distributors Within