Question 29 of 33 2 Points Harry is a citizen and resident of Saudi Arabia During the current year, Harry never visits the United States, nor does he hold a green card However, he received interest on a bond issued by MBI Corporation, a corporation organized in the United States The United States does NOT have an income tax treaty with Saudi Arabia What is the Source of income and how does the U S tax the income OA US Sourced and NOT taxed B US Sourced and taxed at graduated tax rates C US Sourced and taxed at withholding tax rates D Foreign Sourced and NOT taxed O E Foreign Sourced and taxed at graduated tax rates F Foreign Sourced and taxed at withholding tax rates Reset Selection Question 30 of 33 2 Points ScoutCo, a country F corporation, declares a $100 dividend to Piper, a US citizen Pursuant to the law of country F, ScoutCo withholds $10 of withholding tax and pays the remaining $90 to Piper Because of the withholding tax, Piper is not liable for any additional country F's income taxes The $10 of withholding tax is A Creditable because the tax passes the net income requirement B Not creditable because the tax does not pass the net income requirement C Creditable as an in lieu of tax D Not creditable as an in lieu of tax Reset Selection Question 31 of 33 2 Points During the current tax year, Evansco, a US based corporation, received the following income EvansCo performed consulting service for Alpha Corporation, a company located in Japan, which took place at Alpha's branch office located in New York For their services, EvansCo receives $20,000 of service income EvansCo sold a piece of land located in Florida to Beta Corporation, an Australian corporation Their gain on the sale was $15,000 Evans Company leased some testing equipment to Gamma Corporation, a US corporation, for $10,000 The testing equipment was used for 30 days at Gamma Corporations plant in Texas (US) and 30 days at Gamma Corporation's branch office located in Mexico What is the amount of EvansCo's US sourced income OA $45,000 of EvansCo's income is US sourced B $40,000 of EvansCo's income is US sourced C $25,000 of EvansCo's income is US sourced D $20,000 of EvansCo's income is US sourced Reset Selection Question 32 of 33 2 Points All of the following are included in the Passive Category Income basket for purposes of computing the separate baskets of the Foreign Tax Credit limitation, except A Dividends, interest, royalties, rents and annuities B Net gains from commodity and foreign currency transactions C Highly taxed income dividend interest income taxed at greater than 21 for corporations) D All are Passive Category Income Reset Selection Question 33 of 33 2 Points PiperCo, a domestic corporation, operates two lines of business The first business is concession sales at U S baseball games, which generated gross revenues of $2 million The second line of business is concession sales at German professional soccer games, which generated gross revenues of $3 million During the year, PiperCo's US headquarters incurred general and administrative expenses for both businesses totaling $500,000 These expenses should be allocated O A All to U S source income B All to foreign source income C $250,000 to U S source income and $250,000 to foreign source income D $200,000 to U S source income and $300,000 to foreign source income Reset Selection Question 29 of 33 2 Points Harry is a citizen and resident of Saudi Arabia During the current year, Harry never visits the United States, nor does he hold a green card However, he received interest on a bond issued by MBI Corporation, a corporation organized in the United States The United States does NOT have an income tax treaty with Saudi Arabia What is the Source of income and how does the U S tax the income OA US Sourced and NOT taxed B US Sourced and taxed at graduated tax rates C US Sourced and taxed at withholding tax rates D Foreign Sourced and NOT taxed O E Foreign Sourced and taxed at graduated tax rates F Foreign Sourced and taxed at withholding tax rates Reset Selection Question 30 of 33 2 Points ScoutCo, a country F corporation, declares a $100 dividend to Piper, a US citizen Pursuant to the law of country F, ScoutCo withholds $10 of withholding tax and pays the remaining $90 to Piper Because of the withholding tax, Piper is not liable for any additional country F's income taxes The $10 of withholding tax is A Creditable because the tax passes the net income requirement B Not creditable because the tax does not pass the net income requirement C Creditable as an in lieu of tax D Not creditable as an in lieu of tax Reset Selection Question 31 of 33 2 Points During the current tax year, Evansco, a US based corporation, received the following income EvansCo performed consulting service for Alpha Corporation, a company located in Japan, which took place at Alpha's branch office located in New York For their services, EvansCo receives $20,000 of service income EvansCo sold a piece of land located in Florida to Beta Corporation, an Australian corporation Their gain on the sale was $15,000 Evans Company leased some testing equipment to Gamma Corporation, a US corporation, for $10,000 The testing equipment was used for 30 days at Gamma Corporations plant in Texas (US) and 30 days at Gamma Corporation's branch office located in Mexico What is the amount of EvansCo's US sourced income OA $45,000 of EvansCo's income is US sourced B $40,000 of EvansCo's income is US sourced C $25,000 of EvansCo's income is US sourced D $20,000 of EvansCo's income is US sourced Reset Selection Question 32 of 33 2 Points All of the following are included in the Passive Category Income basket for purposes of computing the separate baskets of the Foreign Tax Credit limitation, except A Dividends, interest, royalties, rents and annuities B Net gains from commodity and foreign currency transactions C Highly taxed income dividend interest income taxed at greater than 21 for corporations) D All are Passive Category Income Reset Selection Question 33 of 33 2 Points PiperCo, a domestic corporation, operates two lines of business The first business is concession sales at U S baseball games, which generated gross revenues of $2 million The second line of business is concession sales at German professional soccer games, which generated gross revenues of $3 million During the year, PiperCo's US headquarters incurred general and administrative expenses for both businesses totaling $500,000 These expenses should be allocated O A All to U S source income B All to foreign source income C $250,000 to U S source income and $250,000 to foreign source income D $200,000 to U S source income and $300,000 to foreign source income Reset Selection

Question

Question 29 of 33 2 Points Harry is a citizen and resident of Saudi Arabia  During the current year, Harry never visits the United States, nor does he hold a green card  However, he received interest on a bond issued by MBI Corporation, a corporation organized in the United States  The United States does NOT have an income tax treaty with Saudi Arabia  What is the Source of income and how does the U S  tax the income  OA  US Sourced and NOT taxed B  US Sourced and taxed at graduated tax rates C  US Sourced and taxed at withholding tax rates D  Foreign Sourced and NOT taxed O E  Foreign Sourced and taxed at graduated tax rates F  Foreign Sourced and taxed at withholding tax rates Reset Selection Question 30 of 33 2 Points ScoutCo, a country F corporation, declares a $100 dividend to Piper, a US citizen  Pursuant to the law of country F, ScoutCo withholds $10 of withholding tax and pays the remaining $90 to Piper  Because of the withholding tax, Piper is not liable for any additional country F's income taxes  The $10 of withholding tax is  A  Creditable because the tax passes the net income requirement  B  Not creditable because the tax does not pass the net income requirement  C  Creditable as an in lieu of tax  D  Not creditable as an in lieu of tax  Reset Selection Question 31 of 33 2 Points During the current tax year, Evansco, a US based corporation, received the following income  EvansCo performed consulting service for Alpha Corporation, a company located in Japan, which took place at Alpha's branch office located in New York  For their services, EvansCo receives $20,000 of service income  EvansCo sold a piece of land located in Florida to Beta Corporation, an Australian corporation  Their gain on the sale was $15,000  Evans Company leased some testing equipment to Gamma Corporation, a US corporation, for $10,000  The testing equipment was used for 30 days at Gamma Corporations plant in Texas (US) and 30 days at Gamma Corporation's branch office located in Mexico  What is the amount of EvansCo's US sourced income  OA  $45,000 of EvansCo's income is US sourced  B  $40,000 of EvansCo's income is US sourced  C  $25,000 of EvansCo's income is US sourced  D  $20,000 of EvansCo's income is US sourced  Reset Selection Question 32 of 33 2 Points All of the following are included in the Passive Category Income basket for purposes of computing the separate baskets of the Foreign Tax Credit limitation, except  A  Dividends, interest, royalties, rents and annuities  B  Net gains from commodity and foreign currency transactions  C  Highly taxed income dividend interest income taxed at greater than 21  for corporations)  D  All are Passive Category Income Reset Selection Question 33 of 33 2 Points PiperCo, a domestic corporation, operates two lines of business  The first business is concession sales at U S  baseball games, which generated gross revenues of $2 million  The second line of business is concession sales at German professional soccer games, which generated gross revenues of $3 million  During the year, PiperCo's US headquarters incurred general and administrative expenses for both businesses totaling $500,000  These expenses should be allocated  O A  All to U S  source income  B  All to foreign source income  C  $250,000 to U S  source income and $250,000 to foreign source income  D  $200,000 to U S  source income and $300,000 to foreign source income  Reset Selection Question 29 of 33 2 Points Harry is a citizen and resident of Saudi Arabia  During the current year, Harry never visits the United States, nor does he hold a green card  However, he received interest on a bond issued by MBI Corporation, a corporation organized in the United States  The United States does NOT have an income tax treaty with Saudi Arabia  What is the Source of income and how does the U S  tax the income  OA  US Sourced and NOT taxed B  US Sourced and taxed at graduated tax rates C  US Sourced and taxed at withholding tax rates D  Foreign Sourced and NOT taxed O E  Foreign Sourced and taxed at graduated tax rates F  Foreign Sourced and taxed at withholding tax rates Reset Selection Question 30 of 33 2 Points ScoutCo, a country F corporation, declares a $100 dividend to Piper, a US citizen  Pursuant to the law of country F, ScoutCo withholds $10 of withholding tax and pays the remaining $90 to Piper  Because of the withholding tax, Piper is not liable for any additional country F's income taxes  The $10 of withholding tax is  A  Creditable because the tax passes the net income requirement  B  Not creditable because the tax does not pass the net income requirement  C  Creditable as an in lieu of tax  D  Not creditable as an in lieu of tax  Reset Selection Question 31 of 33 2 Points During the current tax year, Evansco, a US based corporation, received the following income  EvansCo performed consulting service for Alpha Corporation, a company located in Japan, which took place at Alpha's branch office located in New York  For their services, EvansCo receives $20,000 of service income  EvansCo sold a piece of land located in Florida to Beta Corporation, an Australian corporation  Their gain on the sale was $15,000  Evans Company leased some testing equipment to Gamma Corporation, a US corporation, for $10,000  The testing equipment was used for 30 days at Gamma Corporations plant in Texas (US) and 30 days at Gamma Corporation's branch office located in Mexico  What is the amount of EvansCo's US sourced income  OA  $45,000 of EvansCo's income is US sourced  B  $40,000 of EvansCo's income is US sourced  C  $25,000 of EvansCo's income is US sourced  D  $20,000 of EvansCo's income is US sourced  Reset Selection Question 32 of 33 2 Points All of the following are included in the Passive Category Income basket for purposes of computing the separate baskets of the Foreign Tax Credit limitation, except  A  Dividends, interest, royalties, rents and annuities  B  Net gains from commodity and foreign currency transactions  C  Highly taxed income dividend interest income taxed at greater than 21  for corporations)  D  All are Passive Category Income Reset Selection Question 33 of 33 2 Points PiperCo, a domestic corporation, operates two lines of business  The first business is concession sales at U S  baseball games, which generated gross revenues of $2 million  The second line of business is concession sales at German professional soccer games, which generated gross revenues of $3 million  During the year, PiperCo's US headquarters incurred general and administrative expenses for both businesses totaling $500,000  These expenses should be allocated  O A  All to U S  source income  B  All to foreign source income  C  $250,000 to U S  source income and $250,000 to foreign source income  D  $200,000 to U S  source income and $300,000 to foreign source income  Reset Selection

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Question 29 of 33 2 Points Harry is a citizen and resident of Saudi Arabia. During the current year, Harry never visits the United States,

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