Essay
Hawk Corporation has 2,000 shares of stock outstanding: Marina owns 800 shares, Russell owns 500 shares, Velvet Partnership owns 400 shares, and Yellow Corporation owns 300 shares. Marina and Russell, unrelated individuals, are equal partners of Velvet. Marina owns 35% of the stock in Yellow.
a. Applying the § 318 stock attribution rules, determine how many shares in Hawk Corporation each shareholder owns, directly and indirectly:
Marina
Russell
Velvet Partnership
Yellow Corporation
b. Assume, instead, that Marina owns 60% of Yellow Corporation. How many shares does
Marina own, directly and indirectly, in Hawk Corporation?
Correct Answer:
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a. Marina owns 1,000 shares [800 shares ...View Answer
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