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Business, 21.06.2021 16:30 lufung8627

USAco exports videos containing Brewer baseball highlights from the Lopes-Royster era (each video lasts only 30 seconds) on which USAco earns annual gross income of $1.5 million. USAco's video production facility is located in Sheboygan, Wisconsin. On all export sales, title passes in the country of the foreign customer. Which one of the following statements is true? a. USAco has $1.5 million of foreign-source income.
b. Because USAco purchases the videos that it exports, USAco has $.75 million of foreign-source income.
c. USAco cannot take a foreign tax credit because USAco purchases the videos in the United States.

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