Question

# X corporation has 2,000 shares outstanding. John owns 600 shares, Mary owns 500 shares, Z corporation...

X corporation has 2,000 shares outstanding. John owns 600 shares, Mary owns 500 shares, Z corporation owns 600 shares and Y partnership owns 300 shares. John and Mary are equal parners of Y partnership. John owns 30 percent of Z corporation.

Applying stock attribution rules, how many shares are owned by John?

Assume John owns 80% of Z corporation, how many shares are owned by John?

Ans : By applying Stock attribution rules , total shares owned by John :

In X Corporation = 600 shares

In Y Partnership = 150 shares

In Z Corporation = 180 shares

Total shares of John in X Corporation = 600 + 150 + 180 = 930 shares or 46.5%

In 2nd condition John owns 80% of Z Corporation :

Total shares owned by John :-

In X.Corporation = 600 Shares

In Y Partnership = 150 shares

In Z Corporation = 480 Shares

So, total shares of John in X Corporation =

600 + 150 + 480 = 1230 shares or 61.5%

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