In which of the following independent situations would Slane, a foreign corporation, be classified as a controlled foreign corporation? The Slane stock is directly owned 12% by Jen, 10% by Kathy, 12% by Leslie, 10% by David, 8% by Ben, and 48% by Mike.

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CA controlled foreign corporation (CFC) is a foreign corporation in which more than 50% of the total combined voting power of all classes of stock entitled to vote or the total value of the stock is owned by U.S. shareholders on any day during the tax year of the foreign corporation. A U.S. shareholder is defined as a U.S. person who owns 10% or more of the foreign corporation's stock by vote or value.In option A, all shareholders are U.S. citizens, and together they own 100% of Slane, making it a CFC because more than 50% of the stock is owned by U.S. shareholders.In option C, Jen, Kathy, Leslie, David, and Ben are U.S. citizens, and Ben, being Mike's son, might be considered a U.S. person depending on his residency and citizenship status. If Ben is a U.S. citizen, then together with the other U.S. citizens, they own more than 50% of the stock, making Slane a CFC. However, the explanation assumes Ben's U.S. citizenship influences the CFC status due to family relations, which might not directly affect the CFC status unless it affects stock ownership considerations. The critical point is the ownership percentage by U.S. persons, which exceeds 50% in both scenarios.

In Which of the Following Independent Situations Would Slane, a Foreign