Problem 19-51 (LO. 8)

Silver Corporation has 2,000 shares of common stock outstanding. 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 the stock in Maroon Corporation.

a. Applying the 318 stock attribution rules, Howard constructively owns____________ shares in Silver Corporation.

b. If Howard owned 40% of the stock of Maroon Corporation, then he would constructively own______________ shares in Silver Corporation.

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? ____________ shares.