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Question - Brown Corporation has 400 shares of common stock outstanding. Bob owns 150 of the shares, Bob's mother owns 50 shares, Bob's brother owns 40 shares, and Bob's son owns 60 shares. Black Corporation owns 50 shares. Bob owns 70% of the stock in Black Corporation.
a. Applying the stock attribution rules applicable in the case of a stock redemption, how many shares does Bob own in Brown Corporation?
b. Assume Bob owns only 30% of Black Corporation. How many shares does Bob own, directly or indirectly, in Brown Corporation?
c. Assume Bob owns 30% of BZ Partnership and that the partnership owns 50 shares in Brown Corporation. How many shares does Bob own in Brown Corporation assuming the same facts as in a., above, augmented by BZ's ownership of Brown shares?
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