In year $1,$ A$,$ B$,$ and C$,$ each United States citizens and residents, own one$-$third of the stock of Z Corporation, a Bolivian corporation formed as a Sociedad Anonima. Z earns $\backslash (\backslash$$ $200,000\backslash )$ of interest income and $\backslash (\backslash$$ $400,000\backslash )$ of dividend income from unrelated persons and has no expenses and pays no foreign income tax. $1.$ Please explain why $\backslash ($ Z $\backslash )$ is a controlled foreign corporation. Please provide sufficient detail to show each step of your analysis. $2.$ Will A have subpart F income? If so$,$ how much? $3.$ What adjustments must be made to A$\text{'}$s basis in $\backslash ($ Z $\backslash )$ stock as a result of the subpart $\backslash ($ F $\backslash )$ income?