The Following Persons Own Schlecht Corporation, a Non-U ? None of the Shareholders Are Related

question 85

Multiple Choice

The following persons own Schlecht Corporation, a non-U.S.entity. $$\begin{array} { l r } \text { Jim, U.S. individual } & 35 \% \\\text { Gina, U.S. individual } & 15 \% \\\text { Marina, U.S. individual } & 8 \% \\\text { Pedro, U.S. individual } & 12 \% \\\text { Chee, non-U.S.individual } & 30 \%\end{array}$$ ? 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:

Gross Sales Revenue

The total income derived from sales of goods or services, before any deductions or expenses are subtracted.

Lease Termination

The process or act of ending a lease agreement before its specified completion date, by either party.

Landlord's Rights

The legal rights granted to landlords, allowing them to manage and protect their property, including evicting tenants under certain circumstances.

Commercial Leases

Agreements between landlords and businesses to rent commercial properties, such as offices, retail spaces, or warehouses, under specific terms.