Question

Derk owns 450 shares of stock in Rose Corporation. The remaining 1,050 shares of Rose are owned as follows: 150 by Derk's daughter, 300 by Derk's aunt, and 600 by a partnership in which Derk has ownership interest of 90%. Determine the number of shares Derk owns (directly and indirectly) in Rose Corporation.

Answer 1

Answer:

1,140 shares

Explanation:

Given that,

Shares own in Rose corporation = 450 shares

Derk's daughter shares = 150 shares

Derk has ownership interest = 90%

Total shares deemed to own:

= Own shares + Derk's daughter shares + Shares in the partnership holding

= 450 shares + 150 shares + (600 shares × 90% interest)

= 450 shares + 150 shares + 540 shares

= 1,140 shares

Therefore, the number of shares Derk owns (directly and indirectly) in Rose Corporation is 1,140 shares.