Sun and Moon Corporations Each Have Only One Class of Stock

question 30

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:

Rate Of Occurrence

The frequency at which a particular event or phenomenon happens within a specified interval of time.

Visual-Spatial Skills

The capacity to understand, reason, and remember the visual and spatial relationships among objects or space.

Turner Syndrome

A chromosomal disorder found among females that is caused by having a single X sex chromosome and is characterized by infertility.

Nonverbal Memory

The ability to remember and recall information that is not expressed in words, including faces, places, and experiences.