If a U.S. parent corporation owns more than 50% of a foreign corporation either in terms of market value or voting power, the foreign subsidiary is called a ______.

Question

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When a U.S. parent corporation owns at least 50% of a foreign corporation in terms of market value or voting power, the foreign subsidiary is known as a controlled foreign corporation (CFC). The CFC classification is important for tax purposes as it can impact the parent company's tax liability in the United States.

If a US Parent Corporation Owns More Than 50% of a Foreign