Question

Beltway Company is owned equally by George, his brother Thomas, and a partnership owned 50 percent by George and his father Abe. Each of the three shareholders holds 150 shares in the company. Under the §318 stock attribution rules, how many shares of Beltway stock is George deemed to own?

A) 150
B) 225
C) 300
D) 450

Answer 1

Under § 318 stock attribution rules, George is deemed to own a total of 225 shares of Beltway stock -- 150 shares directly and 75 shares through a 50% interest in a partnership.

Step-by-step explanation:

The question pertains to how many shares George is deemed to own in the Beltway Company under the § 318 stock attribution rules. Given that George owns 150 shares directly, his brother Thomas owns another 150 shares, and a partnership in which George has a 50 percent interest through his father Abe owns another 150 shares, we can calculate George's deemed ownership. According to stock attribution rules, George would be considered as owning the shares held directly by him (150 shares) as well as those held by his family members and the partnership in which he has an interest.

George directly owns 150 shares. Through the partnership, George is deemed to own 50% of 150 shares, which is 75 shares. Therefore, the total deemed shares owned by George would be 150 (direct) + 75 (partnership) = 225 shares.