A Foreign Corporation with a Single Class of Stock Is

question 78

Essay

A foreign corporation with a single class of stock is owned 8% by Bert, 49% by Xi Yong, 30% by Ernie, and 13% by Mark. Bert, Ernie, and Mark are U.S. citizens, and Xi Yong is a nonresident alien. Bert is Ernie's son. Is the foreign corporation a controlled foreign corporation (CFC)?

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Definitions:

Poverty Line

A calculated income level used to determine who is considered poor, typically based on a family's total income and size, below which one is considered to live in poverty.

Poverty Rate

The proportion of a population living below the poverty line, indicating the level of economic deprivation in a society.

Conservative View

An economic philosophy that emphasizes free markets, limited government, and individual entrepreneurship as the keys to economic prosperity.

Charles Murray

A social scientist known for his controversial works on intelligence, education, and social structure in American society.