Beltway Company is owned equally by George, his brother Thomas, and a partnership owned 50 percent by George and his father Abe. Each of the three shareholders holds100 shares in the company. Under the §318 stock attribution rules, how many shares ofBeltway stock is George deemed to own?

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Quizplus · Accepted Answer

Under §318 stock attribution rules, stock owned by certain family members and certain entities is attributed to an individual in determining whether that individual owns 50% or more of a corporation. George is deemed to own the shares owned by his brother, and the shares owned by his partnership with his father. This means that George actually owns 100 shares + 100 shares (owned by his brother) + 100 shares (owned by the partnership) = 300 shares. However, since the question asks for how many shares George is deemed to own, the answer is 200 shares, which includes the 100 shares owned by the partnership.

Beltway Company Is Owned Equally by George, His Brother Thomas