Task: songer_direct1

What follows is an opinion from a United States Court of Appeals.
Your task is to determine the ideological directionality of the court of appeals decision, coded as "liberal" or "conservative". Consider liberal to be for government tax claim; for person claiming patent or copyright infringement; for the plaintiff alleging the injury; for economic underdog if one party is clearly an underdog in comparison to the other, neither party is clearly an economic underdog; in cases pitting an individual against a business, the individual is presumed to be the economic underdog unless there is a clear indication in the opinion to the contrary; for debtor or bankrupt; for government or private party raising claim of violation of antitrust laws, or party opposing merger; for the economic underdog in private conflict over securities; for individual claiming a benefit from government; for government in disputes over government contracts and government seizure of property; for government regulation in government regulation of business; for greater protection of the environment or greater consumer protection (even if anti-government); for the injured party in admiralty - personal injury; for economic underdog in admiralty and miscellaneous economic cases. Consider the directionality to be "mixed" if the directionality of the decision was intermediate to the extremes defined above or if the decision was mixed (e.g., the conviction of defendant in a criminal trial was affirmed on one count but reversed on a second count or if the conviction was afirmed but the sentence was reduced). Consider "not ascertained" if the directionality could not be determined or if the outcome could not be classified according to any conventional outcome standards.

PER CURIAM:
The taxpayer, Le Beau Tours Inter-America, Inc., seeks to recover $101,698.65 plus interest paid after the Internal Revenue Service disallowed its deductions as a “Western Hemisphere trade corporation” for the taxable years 1966, 1967 and 1968. The relevant facts were stipulated before Judge Gagliardi, who granted summary judgment for the United States and dismissed Le Beau’s complaint.
Le Beau is in the business of organizing tours to Latin America and the West Indies. It puts together travel plans intended to attract American tourists, and secures the required hotel space and ground services for these arrangements through Latin American representatives. These “package” tours are sold to vacationers by travel agencies in the United States. Le Beau’s customers pay Le Beau an amount equivalent to the actual cost of the foreign accommodations and other services. Le Beau then retains a portion of the funds as the “commission” on its sales and forwards the remainder to the actual provider of the foreign services. These commissions comprise Le Beau’s income.
The question before us is whether Le Beau qualifies for the special deduction available to “Western Hemisphere trade corporations" under 26 U.S.C. §§ 921-922. Section 921 requires that an eligible corporation must earn at least 95% of its gross income for the three years prior to the close of the taxable year from foreign sources. Le Beau asserts that its compensation is wholly derived from sources outside the United States. We agree with Judge Gagliardi that it is not, and thus, Le Beau does not qualify for a reduction in 1966, 1967, and 1968.
Since Le Beau is a service corporation, the source of its income is determined by the place its compensable services are performed. Le Beau claims it receives its income by making arrangements for hotel accommodations and ground services for, and providing some ground services to, overseas travelers. Thus, it asserts, all its income is from foreign sources. But Le Beau does not provide these services. It merely purchases them from foreign “ground operators” for its American clients. Le Beau’s compensation is derived from facilitating and encouraging American travel within the Western Hemisphere. Its services are largely administrative, and consists in the main in planning, organizing and promoting its tours. These services are part of the means whereby Le Beau fosters American travel to Latin America, and are not, as Le Beau contends, mere “expenses” of its business. Judge Gagliardi properly sought to ascertain the proportion of these services performed within the United States. Le Beau, however, stipulated that more than 5% of the time spent in connection with its tours, exclusive of the activities of its foreign ground operators, was attributable to work performed within the United States. Judge Gagliardi properly allocated the source of Le Beau’s income on a time basis, as provided by Treas.Reg. l.£61-4(b)(2). See, Tipton & Kalmbach v. United States, 480 F.2d 1118 (10th Cir. 1973). Thus, we agree with his conclusion that Le Beau derived less than 95% of its income from foreign sources in the relevant yqars. Accordingly, we affirm.
. 26 U.S.C. § 921 defines a “Western Hemisphere trade corporation” as:
. . . a domestic corporation all of whose business (other than incidental purchases) is done in any country or countries in North, Central, or South America, or in the West Indies, and which satisfies the following conditions:
(1) if 95 percent or more of the gross income of such domestic corporation for the 3-year period immediately preceding the close of the taxable year (or for such part of such period during which the corporation was in existence) was derived from sources without the United States; and
(2) if 90 percent or more of its gross income for such period or such part thereof was 'derived from the active conduct of a trade or business.
. 26 U.S.C. § 861(a)(3), 26 U.S.C. § 862(a)(3).
. Nor are we persuaded by Le Beau’s argument that since some of its services are performed in ■ New York by employees of a sister corporation, which is compensated by Le Beau, those services may not be considered in determining the source of its income. Judge Gagliardi correctly rejected this claim.

Question: What is the ideological directionality of the court of appeals decision?
A. conservative
B. liberal
C. mixed
D. not ascertained
Answer:

Answer: B