Lansing Company is owned equally by Jennifer, her husband Dan, and DeWitt Corporation, which is owned 50 percent by Jennifer and her sister Jane. Each of the three shareholders holds 100 shares in the company. Under the §318 stock attribution rules, how many shares of Lansing stock is Jennifer deemed to own?

Question

Quizplus · Accepted Answer

Jennifer is deemed to own 250 shares of Lansing stock under the §318 stock attribution rules. This is because she owns 100 shares directly, and she is also deemed to own 50% of the 100 shares owned by DeWitt Corporation, which is owned 50% by her sister Jane.

Lansing Company Is Owned Equally by Jennifer, Her Husband Dan