Shareholder's weighted average percentage example

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Suppose a calendar-year S Corporation initially has 100 shares outstanding that are equally divided among shareholders A, B, C, and D. On September 1 of the tax year, the corporation issues 100 additional shares and divides them equally between shareholders A and B. On October 1 of the same year, shareholder C sells all of his/her shares to shareholder D.

The following table illustrates how data entry would appear in the Ownership Percentage field and how UltraTax CS completes the individual shareholder's weighted average percentage of ownership based on this information.

Shareholder Beg. of year
date change
Shares
owed
Calculated weighted average
percentage of ownership


1
Beg of year
09/01/18
10/01/18
25
75
75


29.178083


2
Beg of year
09/01/18
10/01/18
25
75
75


29.178083


3
Beg of year
09/01/18
10/01/18
25
25
0


17.671233


4
Beg of year
09/01/18
10/01/18
25
25
50


23.972601

Related topic: How UltraTax CS calculates each shareholder's weighted average percentage overview

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