Task: Which of the following groups constitute a controlled group? (Any stock not listed below is held by unrelated individuals each owning less than 1% of the outstanding stock). For brother-sister corporations, which definition applies?
1. Mark owns 90% of the single classes of stock of Hot and Ice Corporations.
2. Johnson and Carey Corporations each have only a single class of stock outstanding. The two controlling individual shareholders own the stock as follows:
Stock Ownership Percentages
Shareholder Johnson Corp. Carey Corp
David 60% 80%
Kelly 30% 0%
3. Red, Blue and ABC Corporations each have a single class of stock outstanding. The stock is owned as follows:
Stock Ownership Percentages
Shareholder Blue Corp. ABC Corp
Red 80% 50%
Blue 40%
Red Corporation's stock is widely held by over 1,000 shareholders, none of whom owns directly or indirectly more than 1% of Red's stock.
d. Helm, Oak, Walnut and Zinnia Corporations each have a single class of stock outstanding. The stock is owned as follows:
Stock Ownership Percentages
Shareholder Helm Corp. Oak Corp Walnut Corp Zinnia Corp
James 100% 90%
Helm 80% 30%
Walnut 60%.