Question

Acme Corporation has 1,000 shares outstanding. Joan and Bill are married, and they each own 45 shares of Acme. Joan’s daughter, Shirley, also owns 45 shares of Acme. Joan is an equal partner with Jeri in the J&J partnership, and this partnership owns 40 shares of Acme. Jeri is not related to Joan or Bill. How many shares of Acme is Shirley deemed to own under the stock attribution rules?

Number of shares_______

Answer 1

Answer:- Number of shares is 155.

EXPLANATION:-

Shirley is deemed to own 155 shares of Acme. She owns 45 shares directly and is attributed 45 shares from bill ( family attribution).she is also attributed 65 shares from joan (family attribution). Joan owns 45 shares directly and another 20 shares is attributed to joan from J&J( 50% of 40 shares through entity attribution). The 20 shares attributed to joan are reattributed to Shirley through family attribution.