38. LO.7 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 of Maroon.

a. Applying the stock attribution rules, how many shares does Howard own in Silver?

b. Assume that Howard owns only 40% of the stock in Maroon. How many shares does Howard own, directly and indirectly, in Silver?

c. Assume the same facts as in part

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