How much of the interest expense is allocated

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Question - USCo incurred $125,000 in interest expense for the current year. The tax book value of USCo's assets generating foreign-source income is $6,250,000. The tax book value of USCo's assets generating U.S.-source income is $62,500,000. How much of the interest expense is allocated and apportioned to foreign-source income?

Reference no: EM133019766

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