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 100 shares in the company. Under the §318 stock attribution rules, how many shares of Beltway stock is George deemed to own?

Question

Business

Jimena

1 August, 07:20

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 100 shares in the company. Under the §318 stock attribution rules, how many shares of Beltway stock is George deemed to own?

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Answers (1)

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Solomon · Answer 1

George needs to own 200 shares of beltway stocks as per §318 stock attribution rules

Explanation:

As stated, George is a 50 percent partner in the firm, whereas three shareholders in the company own 100 shares. In order to hold 50% shared in the company, 200 shares are required as this would make it 50% shares compared to other stakeholders who combined own 200 shares.