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Diego owns 30 % of Azul Corporation. Azul Corporation owns 50 % of Verde Corporation. Under the attribution rules applying to stock redemptions, Diego is treated as owning 15 % of Verde Corporation. A.
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Diego owns 30 % of Azul Corporation. Azul Corporation owns 50 % of Verde Corporation. Under the attribution rules applying to stock redemptions, Diego is treated as owning 15 % of Verde Corporation.

A. True
B. Flase

User Chanaka Weerasinghe
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1 Answer

1 vote

Answer:

Option A,true is correct

Step-by-step explanation:

The indirect interest of Diego in Verde Corporation is the percentage holding in Azul Corporation multiplied by percentage holding that Azul Corporation owns in Verde Corporation as further illustrated below:

Holding in Verde Corporation=30%*50%

Holding in Verde Corporation=15.00%

In other words, the statement that Diego is treated as owning 15 % of Verde Corporation is true

User Timgcarlson
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