Manchester Corporation, a U. S. corporation, incurred $100,000 of interest expense during the current year. Manchester manufactures inventory that is sold within the United States and abroad. The total tax book value of its U. S. production assets is $20,000,000. The total tax book value of its foreign production assets is $5,000,000. What amount of interest expense is apportioned to the company's foreign source income for foreign tax credit purposes, assuming the interest expense is fully deductible in the current year

the amount of the interest expense is $20,000

Explanation:

The computation of the amount of the interest expense is shown below;

= Interest expense × total tax book value ÷ (total tax book of U.S + total tax book value of its foreign production assets)

= $100,000 × $5,000,000 ÷ ($5,000,000 + $20,000,000)

= $100,000 × $5,000,000 ÷ $25,000,000

= $20,000

hence, the amount of the interest expense is $20,000

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

answer; microeconomics;