McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 3

Petoskey Stone Inc. a U..corporation, received the following sources of income during 2011.Identify the source of each item as either U..or foreign.a.Interest income from a loan to its German subsidiary.b.Dividend income from Granite Corporation, a U..corporation.c.Royalty income from its Irish subsidiary for use of a trademark.d.Rent income from its Canadian subsidiary of a warehouse located in Wisconsin.