Question

This Consider the following scenarios (Click on the icon to view the scenarios) Requirement Which groups constitute controlled groups? (Any stock not listed within the scenarios is held by wted individuals cachowning less than 1% of the outstanding stock) For brother sister corporations, which det a. Judy owns 100% of the single dasses of stock of Hot and le Corporations More info - X А under b. Jones and Kane Corporations each have only a single class of stock outstanding. The two conte Stock Ownership Percentages Shareholder Jones Corp. Kane Corp Tom 60% 100% Mary 40% A under c. Link, Model, and Name Corporations each have a single dass of stock standing. The stock Stock Ownership Percentages Shareholder Model Corp Name Corp a. Judy owns 100% of the single classes of stock of Hot and ice Corporations b. Jones and Kane Corporations each have only a single class of stock outstanding The two controlling individual shareholders own the stock as follows Stock Ownership Percentages Shareholder Jones Corp Kane Corp Tom 60% 100% Mary 40% c. Link Model and Name Corporations each have a single class of stock outstanding. The stock is owned as follows Stock Ownership Percentages Shareholder Model Corp Name Corp Link Corp 30% 50% Model Corp Unrelated individuals 209 10% Click to select your answer(s) Save to Later

Answer 1

Answers:

a.) Judy owns 100% of the single classes of stock of Hot and Ice Corporations

i. A brother-sister controlled group under either the 50%-80% definition or the 50% only definition.

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b.) Jones and Kane Corporations each have a single class of stock outstanding

A brother-sister controlled group under the 50% definition. The 50%-80% definition test is failed because Mary owns no stock in Kane Corporation.

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c.) Link, Model, and Name Corporations each have a single class of stock outstanding.

A parent-subsidiary controlled group because Link is the 80% parent of Model. Link and Model together own 90% of Name.

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Note: Kindly Please feel free to comment if you have any doubts or need any additional notes or clarification