Santa Fe Corporation Manufactured Inventory in the United States and Sold

Multiple Choice

Santa Fe Corporation manufactured inventory in the United States and sold the inventory to customers in Mexico. Gross profit from the sale of the inventory was $247,000. Title to the inventory passed FOB: shipping point. How much of the gross profit is treated as foreign source income for purposes of computing the corporation's foreign tax credit in the current year?

A) $247,000
B) $123,500
C) $0
D) The answer cannot be determined with the information provided.