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:

Paid Less

Receiving lower compensation for work performed compared to others, often highlighted in discussions of wage disparities.

Competent

Having the necessary ability, knowledge, or skill to perform a task successfully or efficiently.

Social Cognitive Perspective

A theoretical framework in psychology that emphasizes the role of observational learning, social experience, and reciprocal determinism in the development of personality and behaviors.

Behaviorism

A theory of learning that emphasizes the importance of observable actions and behaviors, discounting mental activities.