Erin, Sarah, and Timmy are equal partners in EST Partnership. Sarah also owns 40% of Elton Corporation. The remaining shareholders of Elton Corporation are: Erin (24%) and Sarah's uncle (36%). What percent ownership does Sarah directly or constructively own in Elton Corporation?

Question

Quizplus · Accepted Answer

Sarah directly owns 40% of Elton Corporation. Constructively, she is attributed Erin's 24% ownership because they are partners in EST Partnership, giving her a total of 64% ownership.

Erin, Sarah, and Timmy Are Equal Partners in EST Partnership