XYZ, a U.S. corporation, manufactures backpacks in North Carolina. It sells inventory on January 21, 2020, costing $100,000 to an independent buyer in S. Africa for $200,000, with title passing at destination, the warehouse of the customer in Johannesburg. Which statement below is correct: Group of answer choices A. The $100,000 of gross profit is U.S. source income B. The $100,000 of gross profit is foreign source income C. 50% of the $100,000 of gross profit is U.S. source income D. None of the above

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The detailed answer for the above question is provided below The correct statement is B The 1... View the full answer