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FORco is a company incorporated in foreign country F. FORco sends a sales employee to...

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Accounting

FORco is a company incorporated in foreign country F. FORco sends a sales employee to meet with a U.S. customer at the Miami airport to sign a purchase order that will bind FORco only if approved by FORcos management in country F. The U.S. customer signs the purchase order at the Miami airport and FORcos employee goes back home to country F the same day. Which of the following is true?
a. If country F has a treaty with the U.S., FORco has a permanent establishment.
b. If country F does not have a treaty with the U.S., FORco is conducting a trade or business in the US and may have effectively connected income (ECI) subject to US taxation.
c. If country F has a treaty with the U.S., the transaction is considered a U.S. trade or business, but the ECI may be subject to taxation at the lower treaty rates.
d. FORco has a permanent establishment independently of whether there is a treaty or not.

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