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Brown Corporation has 1,000 shares of common stock outstanding. Bob owns 300 of shares, Bob's mother owns 300 shares, Bob's daughter owns 50 shares, and Bob's sister owns 50 shares. Black Corporation owns 200 shares. Bob owns 70 percent of the stock in Black Corporation.
a. Applying the stock attribution principles applicable in the case of a stock redemption, how many shares does Bob own in Brown Corporation?
b. Suppose Bob owns only 45% of Black Corporation. How many shares does Bob own, indirectly or directly, in Brown Corporation?
c. Suppose Bob owns 40 percent of BZ Partnership and that the partnership owns 100 shares in Brown Corporation. Find 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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