Tern Corporation has 2,000 shares of stock outstanding: Marina
owns 700 shares, Russell owns 600 shares, Velvet Partnership owns
300 shares, and Yellow Corporation owns 400 shares. Marina and
Russell, unrelated individuals, are equal partners of Velvet
Partnership. Marina owns 25% of the stock in Yellow
Corporation.
a. Applying the § 318 stock attribution rules, determine how
many shares in Tern Corporation each shareholder owns, directly and
indirectly:
Marina: Velvet Partnership:
Russell: Yellow Corporation:
b. Assume, instead, that Marina owns...