Problem

1. Wham Corp. has 100 Shares of common stock outstanding. 25 shares are owned by grandfather, 20 shares are owned by Mother (grandfthers daughter), 15 shares are owned by Mother's

207 110 REDEMPTIONS AND PARTIAL LIQUIDATIONS CHAPTER 5 Daughter, 10 shares are owned by Mother's adopted Son, and the remaining 30 shares are owned by Grandmother's estate, of which Mother is a 50% beneficiary. One of Mother's cousins is the other beneficiary of the estate. Mother also has an option to purchase 5 of Son's shares. How much Wham stock do Grandfather, Mother's Daughter and Grandmother's estate own after application of $ 318? 2. All the 100 shares of Xerxes Corporation are owned by Partnership, in which A, B, C and D (all unrelated to each other) are equal partners. W, A's wife, owns all of the 100 shares of Yancy Corporation. (a) How many shares, if any, of Xerxes Corporation are owned by A, W and M (W's mother)? (b) How many shares, if any, of Xerxes are owned by Yancy? Would Yancy constructively own any shares of Xerxes if W owned only 10 percent of Yancy? (c) How many shares, if any, of Yancy are owned by Partnership, B, C, D and Xerxes? RIDAD TODD