The Following Persons Own Schlecht Corporation,a Foreign Corporation

question 90

Multiple Choice

The following persons own Schlecht Corporation,a foreign corporation. Jim,U.S.individual 35% Gina,U.S.individual 15% Marina,U.S.individual 8% Pedro,U.S.individual 12% Chee,non-U.S.individual 30% ​ 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:

Low-skilled Labor

Workers with minimal specialized skills, training, or education who are typically employed in jobs that require basic tasks.

Illegal Immigrants

People who enter or reside in a country without the proper authorization or documentation required by immigration laws.

Compensating Wage

Additional pay or benefits provided to employees to offset unpleasant aspects of a job or workplace demands.

Undesirable Work

Work that is deemed unappealing or unsatisfactory to most individuals, often due to low pay, poor working conditions, or the nature of the tasks involved.