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)?
What will be an ideal response?
It is not a CFC (only 43% owned by U.S. shareholders Mark and Ernie). Bert's ownership is not counted as he owns less than 10%.
You might also like to view...
Answer the following statements true (T) or false (F)
1. Presenters should always avoid walking from one side of the room to the other and instead stay in one location for the duration of the speech. 2. Speaking at a slightly faster rate than average is sometimes preferred to a normal speed. 3. Manuscript style outlines help to increase the conversational quality of a presentation. 4. PowerPoint slides should be set on a timer so that the speaker stays on track with their allotted time.
After staying home and raising four children, Mary got a job at a museum. Ten years later, she realized her marriage was in trouble and went for psychological counseling. She later separated from her husband but continued therapy. During a session at which her husband was present, he asked her, "What do you want?" She wrote on a piece of paper that she wanted the house, the car, the joint bank accounts, and a computer. The husband took the note to his attorney, who drafted a property settlement on its basis. Mary, ignoring the advice of her psychologist to hire her own attorney, signed the agreement. She later challenged the agreement on the grounds of incapacity. Will she succeed?
What will be an ideal response?
Pat Painter contracts to paint Harry Homeowner's home for $6,000. Pat would supply all
materials at a cost to Pat of $1,000. Harry breaches by refusing to let Pat paint the house, which Pat found out before spending any money on the materials. Pat is able to find another job that nets a profit of $4,200 during that same time that Harry's house was to be painted. How much can Pat recover from Harry in damages? A) $1,800 B) $800 C) $5,000 D) $3,200 E) $1
________ is/are an internal source of capital.
A. Retained earnings B. The sale of bonds C. Loans D. Private equity E. The sale of stock