10, 11 and 12

Outell, Inc., a U.S. corporation, manufactures computer chips in the United States and sells to an unrelated computer manufacturer distributor in South America. Relevant information is as follows: Allocate the gross income between U.S. and foreign sources using the 50/50 method. Assume the same facts as in Problem 10, except that outell, Inc. no marketing of its product and that the IFP has been established at $3.00 per unit. Allocate the gross income between U.S. and foreign sources using the IFP method. Assume the same facts as in Problem 11, except that Outell, Inc. also sells identical chips to an unrelated wholesaler for $3.50 per unit. Allocate the gross income between U.S. and foreign sources using the IFP method