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 corpora

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?

a. 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%

b. 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.

c. 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%

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