Hendricks Corporation, a domestic corporation, owns 40 percent of Shane Corporation and 55 percent of Ferrell Corporation, both foreign corporations. Ferrell owns the other 60 percent of Shane Corporation. Both Shane and Ferrell are CFCs.

Question

Quizplus · Accepted Answer

Hendricks Corporation directly owns 40% of Shane Corporation and 55% of Ferrell Corporation, making both Shane and Ferrell controlled foreign corporations (CFCs) due to Hendricks' significant ownership stakes. Additionally, since Ferrell owns the remaining 60% of Shane, Shane is also a CFC due to Ferrell's controlling interest.

Hendricks Corporation, a Domestic Corporation, Owns 40 Percent of Shane