Crow Corporation has 800 shares of stock outstanding.Ted owns 300 shares,Ted's mother owns 100 shares,Ted's sister owns 80 shares,and Ted's granddaughter owns 120 shares.Bluebird Corporation owns the remaining 200 shares of stock in Crow.Ted owns 30% of the stock in Bluebird Corporation.In applying the § 318 stock attribution rules,how many shares does Ted own in Crow Corporation?

Question

Quizplus · Accepted Answer

According to § 318 stock attribution rules, Ted will be deemed to own not only his own shares but also the shares owned by his relatives and those owned by Bluebird Corporation. Therefore, Ted will be deemed to own a total of:
300 shares (Ted's own shares) 
+ 100 shares (shares owned by Ted's mother) 
+ 80 shares (shares owned by Ted's sister) 
+ 120 shares (shares owned by Ted's granddaughter) 
+ (30% of 200 shares) (shares owned by Bluebird Corporation, attributed to Ted) 
= 520 shares 
Therefore, the correct answer is C (520 shares).

Crow Corporation Has 800 Shares of Stock Outstanding