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Problem 1: USAco, a domestic corporation, purchases merchandise in the U.S. that it resells in Canada. Title passes in Canada. What The gross profits from these sales are:
Option (a) foreign-source because title passes in Canada.
Option (b) U.S.-source because the seller is a domestic corporation.
Option (c) U.S.-source because the merchandise was purchased in the U.S.
Option (d) sourced under the 50-50 method.
The following unadjusted trial balance is for Adams Construction Co. as of the end of its 2011 fiscal year. The June 30, 2010, credit balance of the owner's.
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