The Schwarzbach Corporation manufactures metal fasteners at a cost of 55 cents per fastener and sells them

Question:

The Schwarzbach manufactures metal fasteners at a cost of 55 cents per fastener and sells them to wholesalers for 60 cents each. During the year, it establishes a 100%-owned CFC in Portugal to sell the fasteners in Europe. Schwarzbach sells the fasteners to its CFC for 58 cents each.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...