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 holds 120 shares in the company. Under the §318 stock attribution rules, how many shares of Beltway stock is George deemed to own?

Question

Quizplus · Accepted Answer

George directly owns 120 shares. Through the partnership, which he owns 50% of, he is attributed another 120 shares (50% of the 240 shares owned by the partnership). Thus, George is deemed to own 240 shares in total.

Beltway Company Is Owned Equally by George, His Brother Thomas