Question

Acme Corporation has 1,000 shares outstanding. Joan and Bill are married, and they each own 45 shares of Acme. Joans daughter, Shirley, also owns 45 shares of Acme.

Joan is an equal partner with Jeri in the J&J partnership, and this partnership owns 70 shares of Acme.
Jeri is not related to Joan or Bill.

How many shares of Acme is Shirley deemed to own under the stock attribution rules?

Answer 1

170 shares

Step-by-step explanation:

Attributed stock:

= Stock owned directly + (Stock owned by mother and father) + (Proportionate stock held by her father in J&J partnership)

= 45 shares + (45 shares + 45 shares) + (70 shares × 50%)

= 45 shares + 90 shares + 35 shares

= 170 shares

Thus, the number of shares held by person S, as stock attribution rules is 170 shares.