The gross profit from a sale of inventory manufactured in the United States and sold in Spain will always be treated as 100 percent U.S.source income.

Question

Quizplus · Accepted Answer

Gross profit from a sale of inventory manufactured in the United States and sold in Spain may be subject to allocation and apportionment rules based on the location of the sale, the production activities, and other factors. Therefore, it may not always be treated as 100 percent U.S. source income.

The Gross Profit from a Sale of Inventory Manufactured in the United