Sun and Moon Corporations Each Have Only One Class of Stock

question 25

Multiple Choice

Sun and Moon Corporations each have only one class of stock outstanding. Their stock ownership is shown below. Which of the four stock ownership changes that are illustrated is the minimum change that is needed if Sun and Moon Corporations are to be brother-sister corporations under the 50%-80% requirements? (Assume the two corporations are equally valued.)

• A)No stock ownership change is required.
• B)Charles must acquire an additional 10% of Moon Corporation.
• C)Charles must acquire an additional 5% of Sun Corporation.
• D)Arthur must acquire an additional 30% of Moon Corporation.

---

Definitions:

Sound Waves

Mechanical vibrations that travel through a medium such as air, water, or solid materials, and can be heard when they reach a human or animal ear.

Pulses

Rapid, transient changes in the amplitude of an electrical signal, often used to convey information or trigger specific actions in electronic devices.

Pressure Switch

A device that activates or deactivates electrical contact in response to changes in pressure level.