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

Question

Quizplus · Accepted Answer

The fact that title passes outside the U.S. means that the income from the sale of inventory is sourced outside the U.S., making it 100% foreign source income.

USCo, a Domestic Corporation, Purchases Inventory for Resale from Distributors