This is an accounting problem from a coporate taxation class. I classified it under "accounting" because Chegg does not give the option for a "taxation" subject.

Problem 19-49 (c) (LO. 8) WhatIf3

Demiter Corporation has 100,000 shares of common stock outstanding. Leonard owns 18,000 shares, Leonard's cousin owns 2,000 shares, Leonard's brother owns 1,500 shares, and Leonard's grandson owns 2,000 shares. In addition, Chambers Corporation owns 5,000 shares. Leonard owns 60% of the stock in Chambers Corporation.

a. Applying the 318 stock attribution rules, Leonard constructively owns (#1)_______ shares in Demiter Corporation.

b. If Leonard owned 20% of the stock of Chambers Corporation, then he would constructively own (#2)_______ shares in Demiter Corporation.

c. Assume the same facts as in (a) above, but in addition, Leonard owns a 20% interest in Carlson Partnership. Carlson owns 3,000 shares in Demiter Corporation.

How many shares does Leonard own, directly and indirectly, in Demiter Corporation? (#3)_______ shares.

#1.

#2.

#3.