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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)?


Definitions:

Welder

A skilled tradesperson who joins metal parts together using various welding techniques.

Protective Goggles

Eyewear designed to safeguard the wearer's eyes from hazardous substances, impacts, or light.

Affirmative Action

Policies and measures aimed at increasing the opportunities for historically disadvantaged groups by favoring them in various aspects such as employment and education.

Quotas

Fixed, quantitative targets that must be met within a certain time frame, often used in sales, production, and immigration policies.

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