Determine the source of income for each item listed below. Home country is the US.

1. Interest paid by Happy Co., a US corporation

a. US source

b. Foreign source

c. 50% US and 50% foreign

d. none of the above

2. Interest paid by a foreign branch of a US bank, Last National Bank, that is engaged in the banking business

a. Foreign source

b. US source

3. Dividend paid by Green Inc., a corporation organized in Spain

a. US source

b. Foreign source

4. A royalty paid by Lauren, a US citizen, for the right to use intellectual property exclusively in Mexico

a. US source

b. Foreign source

c. Who cares

5. $1,000 cash distribution made by Yoga Company, a company organized in Hong Kong if Yoga has $2,000 of earnings and profits

a. US source

b. Foreign source

6. Yoga has $500 of earnings and profits

a. All foreign source

b. All US source

c. 500 US source, then return of basis, then capital gain. The capital gain is foreign source

d. 500 foreign source, then return of basis, then capital gain. The capital gain is US source