Which groups constitute controlled$$ groups? $($Any stock not listed within the scenarios is held by unrelated individuals each owning less than$1\%$ of the outstanding$$ stock.$)$ For$$ brother$-$sister corporations, which definition$$ applies?

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Part $1$

a$.$ Judy owns$100\%$ of the single classes of stock of Hot and Ice Corporations.

A

brother$-$sister controlled group

under

either the $50\%-80\%$ definition or the $50\%-$only definition.

Part $2$

b$.$ Jones and Kane Corporations each have only a single class of stock outstanding. The two controlling individual shareholders own the stock as$$ follows:

Stock Ownership Percentages

Shareholder

$$

Jones Corp.

$$

Kane Corp.

Tom

$$

$60\%$

$$

$100\%$

Mary

$$

$40\%$

$$

$$

A

brother$-$sister controlled group

under

the $50\%-$only definition.

The

$50\%-80\%$ definition

test is failed because

Mary owns no stock in Kane Corporation.

Part $3$

c$.$ Link, Model, and Name Corporations each have a single class of stock outstanding. The stock is owned as$$ follows:

Stock Ownership Percentages

Shareholder

$$

Model Corp.

$$

Name Corp.

Link Corp.

$$

$80\%$

$$

$50\%$

Model Corp.

$$

$$

$$

$40\%$

Unrelated individuals

$20\%$

$10\%$

Link$$ Corporation's stock is widely held by over$1,000$ shareholders, none of whom owns directly or indirectly more than$1\%$ of$$ Link's stock.

A

parent$-$subsidiary controlled group

because

Link is the $80\%$ parent of Model. Link and Model together own $90\%$ of Name.

Part $4$

d$.$ Oat, Peach,$$ Rye, and Seed Corporations each have a single class of stock outstanding. The stock is owned as$$ follows:

Stock Ownership Percentages

Shareholder

$$

Oat Corp.

$$

Peach Corp.

$$

Rye Corp.

$$

Seed Corp.

Bob

$100\%$

$$

$90\%$

$$

$$

$$

$$

Oat Corp.

$$

$$

$$

$$

$$

$80\%$

$$

$30\%$

Rye Corp.

$$

$$

$$

$$

$$

$$

$$

$60\%$

Unrelated individuals

$10\%$

$20\%$

$10\%$

Oat and Peach Corporations are

brother$-$sister controlled group $($under either definition$).$

Oat Corporation is the parent of

Rye

Corporation. Seed Corporation is a group member because

Oat and Rye together own $90\%$ of Seed.

Part $5$

$$Therefore$,$ the$$ Oat$-$Rye$-$Seed group is a

$$

$$

brother$-$sister controlled group $(50\%-80\%$ definition$).$

brother$-$sister controlled group $(50\%-$only definition$).$

brother$-$sister controlled group $($under either definition$).$

combined controlled group.

parent$-$subsidiary controlled group.

Because

$$

$$

Oat

Peach

Rye

Seed

belongs to both$$ groups, all four corporations are a

$$