Lesson 2B:  In Class Exercises:

1.	Beta Corp. purchases 100 shares (representing less than 20% ownership) of Gamma Corp. common stock two months before the ex dividend date for $200,000.  Gamma Corp has been in existence for many years.  Beta receives a 30,000 cash dividend from Gamma.  Beta sells the Gamma stock six months after the ex dividend date for $170,000.  What are the tax consequences of these two transactions?  (PH 3-41).

2.	Same facts as 1, except B purchases the stock two days before the ex dividend date and sells the stock one week after the ex dividend date.

3.	Which of the following are controlled groups of corporations?  (Any stock not accounted for is held by unrelated individuals or the public, none of whom own over 1% of the stock of the given corporation). (PH 3-52)

a.	Judy owns 90% of the single class of stock of H Corp and I Corp.
b.	J and K Corporation, each having a single class of stock outstanding are owned as follows:
J			K
Tom:			60%			80%
Mary:			30%			  0%

c.	 P, Q, and R Corporation, each with a single class of stock outstanding are owned  as follows: 

P			Q			R
Mike			20%			30%			40%

Nancy			5%			10%			20%	

Oscar			10%			 15%			30%