SunCo, a Domestic Corporation, Owns a Number of Patents Related

Multiple Choice

SunCo, a domestic corporation, owns a number of patents related to designing sunglasses. SunCo licenses these patents to unrelated parties. SpainCo, a Spanish corporation, paid SunCo $78,000 in royalties related to these licenses. SpainCo uses the patent information in its manufacturing process in its Texas plant. WiscCo, a domestic corporation, paid SunCo $32,000 in royalties related to the licenses. WiscCo uses the patent information in its manufacturing process in its German manufacturing plant. How much foreign-source royalty income did SunCo earn from these licenses?

A) $0.
B) $32,000.
C) $78,000.
D) $110,000.