Brownstone Corporation has 1,000 shares of stock issued and outstanding. These shares are owned by the following people : 200 shares Bobby 300 shares Bobby's brother 100 shares Felicia Partnership 300 shares Frisco, Inc. 100 shares Colten, Inc. Bobby owns 50% of Felicia Partnership and 40% of Frisco, Inc., and, Felicia Partnership owns the other 60% of Frisco and Colten. Under constructive ownership rules for Sec. 302 stock redemptions, how many shares of stock in Brownstone Corporation is Bobby considered to own?

Question

Fisher Holden

Business

22 July, 07:50

Brownstone Corporation has 1,000 shares of stock issued and outstanding. These shares are owned by the following people : 200 shares Bobby 300 shares Bobby's brother 100 shares Felicia Partnership 300 shares Frisco, Inc. 100 shares Colten, Inc. Bobby owns 50% of Felicia Partnership and 40% of Frisco, Inc., and, Felicia Partnership owns the other 60% of Frisco and Colten. Under constructive ownership rules for Sec. 302 stock redemptions, how many shares of stock in Brownstone Corporation is Bobby considered to own?

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Answers (1)

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Roderick Bonilla · Answer 1

470 shares

Explanation:

Bobbys 50% of Felicia partnership =.5 * 100 = 50

Bobbys 40% of Frisco Inc =.4 * 300 = 120

Total number of bobby share = 300 + 120 + 50 = 470 shares