Question

"Alpert Corp. (a U.S. corporation) manufactures dental equipment in Arizona. It makes sales of dental equipment during the year to the following customers:

I. Rupert Corp. (a foreign corporation) for use in its dental centers in Texas
II. Janis Corp. (a foreign corporation) for use in its dental centers in Canada
III. Rogers Corp. (a foreign corporation and related party) for use in its dental centers in Mexico
IV. Commodore Corp. (a U.S. corporation) for use in its dental centers in Canada
Which transactions increase Alpert Corp.'s foreign-derived intangible income?"

Answer 1

Alpert Corp.'s foreign-derived intangible income is increased by the sales transactions with Rupert Corp., Janis Corp., and Rogers Corp.

Step-by-step explanation:

The transactions that increase Alpert Corp.'s foreign-derived intangible income are:

• Rupert Corp. (a foreign corporation) for use in its dental centers in Texas
• Janis Corp. (a foreign corporation) for use in its dental centers in Canada
• Rogers Corp. (a foreign corporation and related party) for use in its dental centers in Mexico

These transactions increase Alpert Corp.'s foreign-derived intangible income because they involve sales of dental equipment to foreign corporations for use in their dental centers in different countries.