Goolsbee, Inc., a U.S. corporation, generates U.S.-source and foreign-source gross income. Goolsbee's assets tax basis) are as follows.
$$\begin{array} { l r }
\text { Generating U.S.-source income } & \$ 15,000,000 \
\text { Generating foreign-source income } & \underline { 25,000,000 } \
\text { Total } & \$ 40,000,000 \
\hline
\end{array}$$
Goolsbee incurs interest expense of $200,000. 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 basis) are as follows.
$$\begin{array} { l r } 
\text { Generating U.S.-source income } & \$ 15,000,000 \
\text { Generating foreign-source income } & \underline { 25,000,000 } \
\text { Total } & \$ 40,000,000 \
\hline
\end{array}$$
 Goolsbee incurs interest expense of $200,000. 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 basis) are as follows.
$$\begin{array} { l r } 
\text { Generating U.S.-source income } & \$ 15,000,000 \
\text { Generating foreign-source income } & \underline { 25,000,000 } \
\text { Total } & \$ 40,000,000 \
\hline
\end{array}$$
 Goolsbee incurs interest expense of $200,000. Apportion interest expense to foreign-source income.

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