Identify Which of the Following Statements Is False

Multiple Choice

Identify which of the following statements is false.

A) Itemized deductions are allocated between U.S. and foreign- source income.
B) An accrual- basis taxpayer must make an adjustment to their foreign tax credit which reflects the change in exchange rates between the accrual date and the payment date.
C) Income from the sale of personal property (other than inventory) by a U.S. resident is considered earned in the country where the personal property is delivered.
D) Dividend income received by a U.S. individual from a foreign corporation earning nearly all of its income from outside the United States is foreign- source income.