Hubble Corporation has 1,000 shares of common stock outstanding.Jeffrey owns 300 of the shares, Jeffrey's grandfather owns 200 shares, Jeffrey's daughter owns 300 shares, and Quasar Corporation owns 200 shares.Jeffrey owns 60% of the stock in Quasar Corporation.How many shares is Jeffrey deemed to own in Hubble Corporation under the attribution rules of § 318?

Question

Quizplus · Accepted Answer

Under the attribution rules of § 318, Jeffrey is deemed to own the shares held by his family members and Quasar Corporation. Therefore, he is deemed to own 200 shares held by his grandfather, 300 shares held by his daughter, and 200 shares held by Quasar Corporation. Since he owns 60% of the stock in Quasar Corporation, he is deemed to own an additional 60% of the 200 shares, or 120 shares. Therefore, Jeffrey is deemed to own a total of 820 shares (300 + 200 + 300 + 120) in Hubble Corporation.

Hubble Corporation Has 1,000 Shares of Common Stock Outstanding