Goolsbee, Inc., a U.S. corporation, generates U.S.-source and foreign-source gross income. Goolsbee's assets (tax basis) 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. Apportion interest expense to foreign-source income.

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The Answer of Goolsbee, Inc., a U.S. corporation, generates U.S.-source and foreign-source gross income. Goolsbee's assets (tax basis) 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. Apportion interest expense to foreign-source income.

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