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 100 shares in the company. Under the §318 stock attribution rules, how many shares of Beltway stock is George deemed to own?
A)100
B)150
C)200
D)300

Question

Quizplus · Accepted Answer

According to the §318 stock attribution rules, George is deemed to own the shares of Beltway owned by his brother Thomas and the 50% ownership in the partnership owned by George and his father. 
- George owns 100 shares
- Thomas owns 100 shares, which are attributed to George
- George owns 50% of the partnership, which owns 100 shares, so he is deemed to own 50 shares from the partnership 
- Abe owns the other 50% of the partnership, but since he is not related to George by family or ownership, his shares are not attributed to George 
Thus, George is deemed to own a total of 200 shares of Beltway stock (100 of his own, 100 from Thomas, and 50 from the partnership).

Beltway Company Is Owned Equally by George, His Brother Thomas