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2.USAco, a domestic corporation, owns all of the stock of FSub, a foreign corporation. FSub manufactures widgets and sells them at a price of $100
2.USAco, a domestic corporation, owns all of the stock of FSub, a foreign corporation. FSub manufactures widgets and sells them at a price of $100 to USAco, which then resells the widgets to U.S. customers. USAcos gross receipts for the year are $200 million.
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