Answered

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LO 6.3 BJT Corporation is owned 40 percent by Bill, 30 percent by Jack, and 30 percent by the Trumpet Partnership. Bill and Jack are father and son. Jack has a 10 percent interest in Trumpet Partnership. What is Jack’s total direct and constructive ownership of BJT Corporation under Section 267?

Sagot :

Answer:

Jack’s total direct and constructive ownership of BJT Corporation under Section 267 is 33%.

Explanation:

From the question, we have the following:

Jack's ownership of BJT Corporation = 30%

Jack's interest in Trumpet Partnership = 10%

Jack's share of 30 percent owned by Trumpet Partnership in BJT Corporation = Jack's interest in Trumpet Partnership * 30 percent owned by Trumpet Partnership in BJT Corporation = 10% * 30% = 3%

Therefore, we have:

Jack’s total direct and constructive ownership of BJT = Jack's ownership of BJT Corporation + Jack's share of 30 percent owned by Trumpet Partnership in BJT Corporation = 30% + 3% = 33%

Therefore, Jack’s total direct and constructive ownership of BJT Corporation under Section 267 is 33%.

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