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:

Intended Message

The specific information or emotion that a communicator aims to convey to the recipient.

Interpreted Meaning

The perceived or understood significance of a concept or message based on one's analysis or perspective.

Efficient Communication

The ability to convey messages or information clearly and effectively with minimal waste of time and resources.

Minimum Costs

The lowest possible expenses incurred in the production of goods or services or in the operation of a company.