Which statement best describes the U.S. framework for taxing non-U.S. persons on income earned from U.S. sources?

A) Income that is characterized as effectively connected income is subject to net taxation while income that is characterized as fixed and determinable, annual or periodic income is subject to withholding tax applied to gross income

B) Income that is characterized as effectively connected income is subject to a withholding tax applied to gross income while income that is characterized as fixed and determinable, annual or periodic income is subject to net taxation.

C) All US source income is subject to net taxation, regardless of whether it is characterized as effectively connected or fixed and determinable, annual or periodic income.

D) All US source income is subject to a withholding tax applied to gross income, regardless of whether it is characterized as effectively connected or fixed and determinable, annual or periodic income.

Please explain