1. XYZ Corporation has 10,000 shares of voting common stock outstanding. The shares of XYZ are owned as follows:

3,000 shares owned by Art (Wendy's husband)

3,000 shares owned by Wendy (Art's wife)

2,000 shares owned by Diana (Art/Wendys daughter)

1,000 shares owned by Sam (Art/Wendys son)

1,000 shares owned by Greg (Sam's son)

1. What is the percentage ownership interest of Art and his fellow shareholders taking into consideration 318 (the constructive ownership rules)

2. What are the consequences to Diana and Greg if XYZ Corporation redeems six (6) shares of stock from each of them; i.e., will the redemptions qualify under 302(a)?

3. What are the consequences to Diana if XYZ Corporation redeems all of her shares of stock from her; i.e., will that redemption qualify under 302(a)?