The Following Persons Own Schlecht Corporation, a Foreign Corporation

question 27

Multiple Choice

The following persons own Schlecht Corporation, a foreign corporation. ​
None of the shareholders are related. Subpart F income for the tax year is $300,000. No distributions are made. Which of the following statements is correct?

• A) Schlecht is not a CFC.
• B) Chee includes $90,000 in gross income.
• C) Marina is not a U.S. shareholder for purposes of determining whether Schlecht is a CFC.
• D) Marina includes $24,000 in gross income.

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Definitions:

Internal Colonialism

The economic and political subjugation of the minority group within a country by the dominant group, leading to social inequalities.

Segregated School System

An education system where schools are divided based on racial, ethnic, or economic lines, leading to unequal opportunities and resources.

Colonized Peoples

Groups or communities that have been subjected to colonialism, where their territories and resources are dominated by a foreign power.

Internal Colonialism

A concept describing how a country's dominant group exploits minority groups for economic gain, treating them as colonized people within the same nation.