AirCo, a domestic corporation, purchases inventory for resale from unrelated distributors within the United States and resells this inventory to customers outside the United States with title passing outside the United States. What is the source of AirCo's inventory sales income?

Question

Quizplus · Accepted Answer

The source of AirCo's inventory sales income is considered foreign source as the sale is made to customers outside the United States and title passes outside the United States. Therefore, there is no connection to a U.S. source income.

AirCo, a Domestic Corporation, Purchases Inventory for Resale from Unrelated