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 source of USCo's inventory sales income is 100% foreign source, as the sales were made to customers outside the U.S. and the title passed outside the U.S. The fact that the inventory was purchased within the U.S. and from U.S. distributors does not affect the source of income from the resale to foreign customers.

USCo,a Domestic Corporation,purchases Inventory for Resale from Distributors Within the U.S.and