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Problem 1: USAco, a domestic corporation, loans $100,000 to Toni, a U.S. citizen and resident. Interest of $10,000 is payable annually on December 31 of each year. Toni is physically present in Mexico on December 31, 20Y2 when he pays the interest. What The interest income is:
Option (a) U.S.-source because USAco is a domestic corporation.
Option (b) U.S.-source because Toni is a U.S. resident.
Option (c) sourced under the 50-50 method.
Option (d) foreign-source because Toni is physically present in Mexico on December 31 when the interest is paid.
At December 31, 2019, the following information was available for Marigold Corp.: ending inventory $35,500, Calculate inventory turnover for Marigold Corp
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