Geneva Corporation, a privately held company, has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows:

Madison has a 20 percent interest in the partnership. The remaining 80 percent is owned by unrelated individuals. Madison owns 40% of Packer Corporation. The other 60 percent is owned by her father.
How many shares of stock is Madison deemed to own under the family attribution rules in a stock redemption?

Question

Geneva Corporation, a privately held company, has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows:
  
Madison has a 20 percent interest in the partnership. The remaining 80 percent is owned by unrelated individuals. Madison owns 40% of Packer Corporation. The other 60 percent is owned by her father.
How many shares of stock is Madison deemed to own under the family attribution rules in a stock redemption?

Quizplus · Accepted Answer

The Answer of Geneva Corporation, a privately held company, has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows:
  
Madison has a 20 percent interest in the partnership. The remaining 80 percent is owned by unrelated individuals. Madison owns 40% of Packer Corporation. The other 60 percent is owned by her father.
How many shares of stock is Madison deemed to own under the family attribution rules in a stock redemption?

Geneva Corporation, a Privately Held Company, Has One Class of Voting