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 own stock in Parakeet. In applying the § 318 attribution rules:
A) The estate owns 400 shares.
B) Keshia owns 320 shares.
C) Keshia owns 600 shares.
D) The estate owns 460 shares.
E) None of the above.

Question

Quizplus · Accepted Answer

Under § 318 attribution rules, Keshia is considered to own the 400 shares owned by the estate due to her beneficiary interest. Therefore, Keshia's total ownership is 200 (original shares) + 400 (shares owned by the estate attributed to her) = 600 shares.

Keshia Owns 200 Shares in Parakeet Corporation