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

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

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