Question

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?

Answer 1

Answer:

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