(a) the value of the direct interest (if any) of the entity in the
corporation,
(b) the value of each indirect interest of the entity in the
corporation.
(3) For example--
(a) an entity has a direct interest (with a
value of 40%) in corporation B,
(b) the entity also has a direct interest
(with a value of 25%) in corporation A, which in turn has a direct interest
(with a value of 60%) in corporation B. Accordingly, the entity also has an
indirect interest in corporation B with a value of 15% (that is, 25% ×
60%),
(c) the value of the entity's aggregate interest in corporation B is
the sum of the direct interest (40%) and the indirect interest (15%), which is
55%,
(d) accordingly, in this example, the entity has a controlling interest
in corporation B (within the meaning of section 73 (Groups arising from
tracing of interests in corporations)).
