RainCo, a U.S. corporation, owns a number of patents related to designing umbrellas. RainCo licenses these patents
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RainCo, a U.S. corporation, owns a number of patents related to designing umbrellas. RainCo licenses these patents to unrelated parties. TexCo, a domestic corporation, paid RainCo $100,000 in royalties related to these licenses. TexCo uses the patent information in its manufacturing process in its Canadian plant. IrishCo, an Irish corporation, paid RainCo $25,000 in royalties related to the licenses. IrishCo uses the patent information in its manufacturing process in its Michigan manufacturing plant. How much U.S.-source royalty income did RainCo earn from these licenses?
A. $0.
B.$25,000.
C. $100,000.
D. $125,000.
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Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
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