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Sharon Corporation redeems 20 shares of Kevin's common stock. Kevin directly owned 50 shares prior to the redemption. Kevin is also a 50% partner in AMI Partnership which also holds 50 shares of Sharon.
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Sharon Corporation redeems 20 shares of Kevin's common stock. Kevin directly owned 50 shares prior to the redemption. Kevin is also a 50% partner in AMI Partnership which also holds 50 shares of Sharon. How many shares is Kevin treated as owning prior to the redemption

User Brian Brinley
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1 vote

Answer:

75 shares

Step-by-step explanation:

In this specific scenario, it seems that Kevin is treated to 75 shares prior to the redemption. This is calculated by adding the 50 shares that Kevin holds directly prior to the redemption itself as well as the 25 extra shares that are held by AMI. These 25 shares are 50% of the total 50 shares that AMI holds since Kevin is a 50% partner.

User Bhavana Vadodariya
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