Kite Corporation has 1,000 shares of stock outstanding. Kent owns 300 shares, Kent's father owns 200 shares, Kent's daughter owns 100 shares, and Kent's aunt owns 200 shares. Plover Corporation owns the other 200 shares in Kite Corporation. Kent owns 75% of the stock in Plover Corporation. Applying the § 318 stock attribution rules, how many shares does Kent own in Kite Corporation?

Question

Quizplus · Accepted Answer

Under § 318 stock attribution rules, Kent is attributed the shares owned by his father and daughter, but not his aunt. He also is attributed 75% of the shares owned by Plover Corporation. Therefore, Kent owns 300 (his own) + 200 (father) + 100 (daughter) + 150 (75% of Plover's 200 shares) = 750 shares.

Kite Corporation Has 1,000 Shares of Stock Outstanding