Keshia owns 200 shares in Parakeet Corporation. Keshia has a 30% beneficiary interest in her deceased grandmother's estate. The estate owns 400 shares in Parakeet Corporation. None of the other beneficiaries of the estate owns stock in Parakeet. In applying the § 318 attribution rules:

Question

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Under § 318 attribution rules, Keshia is considered to own not only her own 200 shares but also a proportionate share of the 400 shares owned by her grandmother's estate based on her 30% beneficiary interest. This means she is attributed an additional 120 shares (30% of 400), totaling 320 shares (200 personal + 120 attributed).

Keshia Owns 200 Shares in Parakeet Corporation