LO.1Silver Corporation has 2,000 shares of commonstockoutstanding. Howard owns 600 shares, Howard's grandfather owns 300 shares, Howard's mother owns 300 shares, and Howard's son owns 100 shares. In addition, Maroon Corporation owns 500 shares. Howard owns 70% of thestockin Maroon Corporation.

B. Assume that Howard owns only 40% of thestockin Maroon Corporation. How many shares does Howard own, directly and indirectly, in Silver Corporation?

My answer:

Directly: 600

Indirectly: 300 from mom, 100 from son, 200 from Maroon

C. Assume the same facts as in (a) above, but in addition, Howard owns a 25% interest in Yellow Partnership. Yellow owns 200 shares in Silver Corporation. How many shares does Howard own, directly and indirectly, in Silver Corporation?

My Answer:

Indirectly owns 300 from mom, 100 from son, 350 from Maroon Corporations, 50 from Yellow

Directly owns: 600 he owns