ForCo, a Non-U

question 59

True/False

ForCo, a non-U.S. corporation based in Aldonza, purchases widgets from USCo, Inc., its U.S. parent corporation.
The widgets are sold by ForCo to an unrelated foreign corporation in Aldonza. The income from sale of the widgets by ForCo is Subpart F foreign base company sales income.

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Definitions:

Common Law

A legal system based on precedent and court rulings, as opposed to statutes or written legislation, forming a major part of the law in many English-speaking countries.

Statutory Assignment

The transfer of a legal right from one person to another pursuant to specific statutes.

Notice in Writing

A formal method of communication that is documented in a written format and often required by law or contracts to announce changes or intentions.

Privity of Contract

A doctrine in contract law stipulating that only parties to a contract can sue or be sued on it.