WaterCo, a domestic corporation, purchases inventory for resale from unrelated distributors outside the U.S. It resells this inventory to U.S. customers, with title passing inside the United States. What is the source of WaterCo's inventory sales income?
a. 100% U.S. source.
b. 100% foreign source.
c. 50% U.S. source and 50% foreign source.
d. 50% foreign source and 50% sourced based on location of manufacturing assets.
a
You might also like to view...
Joan Miller is the President of an advertising agency. One of the adjustments a staff accountant made at the end of July was $360 for unpaid wages of the secretary. Joan Miller might ask, "Why go to the trouble of making this adjustment? Why worry about
it? Doesn't everything come out in the end, when the secretary is paid in August? Because wages expense in total is the same for the two months, isn't the net income in total unchanged?" Give three reasons why adjusting entries can help Joan Miller assess the performance of the business. (Net income was $1,600.)
Goods can be defined in terms of their physical attributes, but services cannot because they are intangible.
Answer the following statement true (T) or false (F)
It's oversimplified to classify retailers and their strategies on the basis of a single characteristic-such as sales volume, services, product assortment, etc.
Answer the following statement true (T) or false (F)
Wiswell Inc. reported the following results from last year's operations: Sales$15,200,000Variable expenses 9,270,000Contribution margin 5,930,000Fixed expenses 5,018,000Net operating income$912,000?The average operating assets were $8,000,000.?At the beginning of this year, the company has a $900,000 investment opportunity that would involve sales of $2,070,000, a contribution margin ratio of 30% of sales, and fixed expenses of $538,200. The company's minimum required rate of return is 10%. If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:
A. $104,800 B. ($19,800) C. $994,800 D. $925,600