For brother-sister corporations which definition applies

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Reference no: EM1376246

Which of the subsequent groups constitute a controlled group? (Any stock not listed below is held by unrelated individuals every owning less than 1% of the outstanding stock.) For brother-sister corporations, which definition applies?

a. Carey and Johnson Corporations each have only a single class of stock outstanding. The two controlling individual shareholders own the stock as given:
Stock Ownership Percentages
Shareholder Johnson Corp. Carey Corp
Kelly 30% 0%
David 60% 80%
b. Red, Blue and ABC Corporations each have a single class of stock outstanding. The stock is owned as given:
Stock Ownership Percentages
Shareholder Blue Corp. ABC Corp
Blue 40%
Red 80% 50%

Red Corporation's stock is extensively held by over 1,000 shareholders, none of whom owns directly or indirectly more than 1 percent of Red's stock.
c. Helm, Oak, Zinnia and Walnut Corporations each have a single class of stock outstanding. The stock is owned as given:

Stock Ownership Percentages
Shareholder Helm Corp. Oak Corp Walnut Corp Zinnia Corp
Helm 80% 30%
James 100% 90%
Walnut 60%

Reference no: EM1376246

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