Question

A foreign sales corporation is a device used by U. S. exporters to reduce taxes. To qualify, the goods exported must have _____ percent U. S. content. This results in a tax reduction of _____ percent.

Answer 1

Answer:

To qualify, the goods exported must have 50 percent U. S. content. This results in a tax reduction of 15 percent.

Explanation:

Foreign sales corporations (FSC) no longer exist. The FSC corporation had to be set up in the US, but it had to operate in foreign countries that complied with information agreements with the US government (IRS). It helped exporting companies to lower taxes, but they ceased to exist in year 2000.