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:

Understanding

The ability to comprehend, grasp the meaning of, or assign significance to something, such as concepts, behaviors, or phenomena.

Culture Shock

The feeling of disorientation experienced by someone when they are suddenly subjected to an unfamiliar culture, way of life, or set of attitudes.

Confusion

A state of perplexity or uncertainty due to difficulty in understanding something or making a decision.

Unfamiliar Culture

A culture that an individual has not been exposed to, leading to potential lack of understanding or knowledge about its practices and norms.