Hawk Corporation Has 2,000 Shares of Stock Outstanding: Marina Owns

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 Partnership. Marina owns 35% of the stock in Yellow Corporation.
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?