United States Tool Corp., a U.S. corporation sells all the stock of its wholly owned German subsidiary, Modern Tool A.G., to an unrelated German corporation for $50 million cash, which produces a gain of $40 million. All negotiations occur and the sale contract is executed in Germany. Title of the stocks passes to the purchaser in Germany, and the purchase price is paid in Germany. Modern Tool A.G. has been actively engaged in business in Germany and France for the last 10 years and has received approximately 60% of its gross income from France and 40% from Germany each year. Is the gain foreign source income?