Goolsbee,Inc.,a U.S.corporation,generates U.S.-source and foreign-source gross income.Goolsbee's assets (tax book value)are as follows.
$\begin{array}{ll}
\text { Generating U.S.-source income } & \$ 15,000,000 \
\text { Generating foreign-source income } & \underline{25,000,000} \
\text { Total } & \underline{\$ 40,000,000}
\end{array}$ Goolsbee incurs interest expense of $200,000.Using the fair market value and the tax book value,apportion interest expense to foreign-source income.

Question

Goolsbee,Inc.,a U.S.corporation,generates U.S.-source and foreign-source gross income.Goolsbee's assets (tax book value)are as follows.
 $\begin{array}{ll}
\text { Generating U.S.-source income } & \$ 15,000,000 \
\text { Generating foreign-source income } & \underline{25,000,000} \
\text { Total } & \underline{\$ 40,000,000}
\end{array}$ Goolsbee incurs interest expense of $200,000.Using the fair market value and the tax book value,apportion interest expense to foreign-source income.

Quizplus · Accepted Answer

The Answer of Goolsbee,Inc.,a U.S.corporation,generates U.S.-source and foreign-source gross income.Goolsbee's assets (tax book value)are as follows.
 $\begin{array}{ll}
\text { Generating U.S.-source income } & \$ 15,000,000 \
\text { Generating foreign-source income } & \underline{25,000,000} \
\text { Total } & \underline{\$ 40,000,000}
\end{array}$ Goolsbee incurs interest expense of $200,000.Using the fair market value and the tax book value,apportion interest expense to foreign-source income.

Goolsbee,Inc Goolsbee Incurs Interest Expense of $200,000