A Foreign Corporation with a Single Class of Stock Is

question 38

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. The shareholders are not related. Is the foreign corporation a controlled foreign corporation (CFC)?

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Definitions:

Phlebotomy

The act of drawing or removing blood from the circulatory system through a cut or puncture to obtain a sample for analysis or therapeutic purposes.

Telangiectasis

A condition characterized by the dilation of small blood vessels near the surface of the skin or mucous membranes, resulting in visible red or purple lines.

Adult Heartbeat

The typical heartbeat rate for a healthy adult, ranging between 60 to 100 beats per minute.

Septum

A partition or wall separating two chambers, such as in the heart or nose.